Aromatics

The FOB Korea benzene market softened. In the previous week, prices had increased along with a sharp rise in US benzene prices. But the increase did not continue. The market was pressured by ample supply in Asia. The CFR Northeast Asia paraxylene (PX) market rose slightly along with crude prices.

Olefins

The CFR Northeast Asia ethylene market decreased as buying interest receded along with worsening derivative profitability. In talks this week, several deals were reportedly done in the mid to high $700's/mt. In these deals, Asian and non-regional cargoes were apparently traded. On the other hand, end-users wanted to buy in the low $700's/mt but views were heard that they might be willing to pay the high $700's/mt if they were in a hurry to buy.

The Asia propylene market strengthened. In Northeast Asia, sellers showed no hurry to sell in view of tight supply. On the other hand, as imported cargoes were limited, Chinese end-users procured domestic cargoes and the domestic market was supported. Under this situation, discussion levels moved up. In Korea, Lotte Chemical conducted a buy tender for September delivery.

The Asia butadiene market increased. In Northeast Asia, supply was tight as non-regional supply was reduced and Asian makers had no room for spot sale. On the other hand, end-users still showed buying interest and the market rose. In Southeast Asia, Thailand's PTTGC conducted a sell tender for Aug 23-25 loading.