Aromatics

The Northeast Asia aromatics market was firm, supported by strength in benchmark feedstock crude prices. As stated in the previous weekly summary, a fire occurred at ExxonMobil's refinery in the US. Therefore, demand for use as gasoline feedstock was perceived to increase and this supported the toluene and mixed xylene market in Asia.

Olefins

The CFR Northeast Asia ethylene market decreased. In China, transport was disturbed by the new coronavirus outbreak. Because of this, derivative makers had difficulty in shipment and reduced operating rates. Therefore, demand for ethylene was low. In talks this week, a March delivery cargo was traded at $680/mt. On the other hand, operating rates were also reduced at some naphtha crackers due to a fall in profitability and players focused on supply/demand balance going forward.

The Asia propylene market strengthened. In Northeast Asia, with price in China's Shandong region rising and many naphtha crackers in Korea reducing production, traders moving to sell to trim stocks were no longer seen and perceptions of ample supply faded. On an FOB Korea basis, availability was limited and talks were thin. In Southeast Asia, Hyosung Vietnam conducted a buy tender for March delivery. Thailand's PTTGC carried out a sell tender for early March loading.

The Asia butadiene market fell. In Northeast Asia, due to the new coronavirus outbreak, derivative makers in China saw a slowdown in shipments and their inventories increased. As a result, they shut down their facilities or reduced production. A number of deals were done at $750-780/mt Indian cargoes were also available. On an FOB Korea basis, sales to China were sluggish and sellers faced inventory pressure. Deals were done at $780/mt and $750/mt in that order. In Southeast Asia, Thailand's PTTGC conducted a sell tender for mid-March loading.