Aromatics

FOB Korea benzene prices softened in the middle of the week. Along with a sharp fall in coal futures in China, styrene monomer futures decreased. Further, costs for benzene, whose feedstock is coal, were also perceived to fall. CFR Northeast Asia paraxylene (PX) prices moved in a narrow range. Benchmark feedstock naphtha prices were firm while PTA futures on the Zhengzhou Commodity Exchange were bearish. As a result, the PX market was mostly stable.

Olefins

CFR Northeast Asia ethylene prices increased since prices for derivatives such as polyvinyl chloride (PVC) were strengthening. In addition, along with disruption of vessel operations, supply for imported cargoes was limited and this also supported the market. In trade this week, a cargo to be delivered to China in November was traded at $1,190/mt.

The Asia propylene market was quiet. As an olefin-related conference was taking place in China, players were limited and a wait-and-see mood was strong. Further, amid high feedstock costs, sellers adopted a firm stance. On the other hand, buying interest from Chinese end-users was thin. In Korea, one maker conducted a sell tender for November loading at the beginning of the week but the tender was not awarded as bids did not meet its expectations.

The Asia butadiene market strengthened along with surging China domestic prices. In Northeast Asia, several methanol-based olefin facilities in China were shut down and few imported cargoes were flowing in. Supply was therefore tight. On the other hand, derivative synthetic rubber prices were firm and buying interest increased. Under this situation, a deal for delivery to China was reportedly done at $850/mt. On an FOB Korea basis, buying interest from traders heightened and a deal for November loading was concluded at $810/mt.