Aromatics

The FOB Korea benzene market followed the crude market. The market softened in the first half of the week but the fall was offset in the second half of the week. But the market was curbed by a decease in profitability of derivative styrene monomer (SM). The paraxylene (PX) market was firm. Since operating rates of downstream polyester facilities were high and demand was expected to recover, the PX market was supported.

Olefins

The CFR Northeast Asia ethylene market increased owing to tight supply. In the recent trade, a cargo for delivery to China was traded at $845/mt by the previous week and at the beginning of this week, a rumor of a deal at $850/mt was heard. As profitability of derivatives was worsening, some makers including Chinese SM makers were considering to reduce production. For this reason, views arose that demand for feedstock ethylene might decline.

In the Asia propylene market, CFR Northeast Asia and FOB Korea prices rose while CFR Southeast Asia prices fell. In Northeast Asia, supply of Asian cargoes was tight and China domestic prices were firm. As a result, sellers adopted a bullish stance and the market moved up. In Southeast Asia, demand was not as strong as before and the price spread with the CFR Northeast Asia market widened. Thailand's PTTGC conducted a sell tender for mid-July loading.

The Asia butadiene market was unchanged. In Northeast Asia, non-regional supply was reduced and amid high feedstock costs, sellers held a bullish view and hoped to negotiate based on market quotations. End-users, however, were reluctant to raise their bids and talks were stymied. In Southeast Asia, Malaysia's Lotte Chemical Titan conducted a sell tender for July loading.