Aromatics

The FOB Korea benzene market was at high levels along with a rise in Europe and US benzene prices. But in the second half of the week, the US benzene market fell along with a drop in crude prices and FOB Korea prices decreased at the end of trade. The CFR Northeast Asia paraxylene (PX) market moved in a narrow range. Supply was tight due to facility troubles and maintenance. But as profitability of PTA was not high, demand was not strong and the market was curbed.

Olefins

The CFR Northeast Asia ethylene market strengthened owing to tight supply mainly caused by troubles and maintenance at ethylene facilities. Further, the arbitrage from the US to Asia was still closed and supply was tight in Europe. As a result, supply of non-regional cargoes was also limited. For June delivery, supply was expected to remain tight. Under this situation, a deal was reported at $1,130-1,140/mt in trade this week.

The Asia propylene market strengthened. In Northeast Asia, many facilities in Japan and Korea were under maintenance or experiencing problems and supply was perceived to be tight. Under this situation, demand for delivery to Japan and Korea was robust. Chinese end-users, however, were not keen to buy imported cargoes due to ample domestic supply. Further, softening derivative polypropylene prices also dampened Chinese end-users' buying interest. In Korea, one maker sold June loading at $1,100/mt and above. In Southeast Asia, many makers had surplus supply and sold in the spot market.

The Asia butadiene market moved up. In Northeast Asia, Korean cargoes were sold to the US, generating views that supply in Asia might tighten going forward. Although firm talks were not heard, market sentiment was bullish. In Southeast Asia, Thailand's PTTGC sold June loading via a tender.