Aromatics

The FOB Korea benzene and the CFR Northeast Asia paraxylene (PX) market strengthened in the first half of the week but decreased in the second half of the week along with changes in benchmark feedstock crude and naphtha prices. In addition, sentiments of the downstream polyester market were weak due to a sharp fall in prices for ethylene glycol (EG), a feedstock. As a result, PX and derivative pure terephthalic acid (PTA) prices were pressured.

Olefins

The CFR Northeast Asia ethylene market decreased slightly. Since prices for many derivatives decreased and profitability was no longer secured, buying interest for ethylene receded. On the other hand, as feedstock costs including naphtha were high, ethylene makers had limited room to reduce prices. Under this situation, the fall in the market was limited. In the market, buying ideas were heard at $1,150/mt while selling ideas were at $1,200/mt and above.

The Asia propylene market was quiet. In Northeast Asia, with the China domestic prices on a downtrend, both buyers and sellers were trying to check movements in the domestic market. No deals were reported and activity was muted. In Southeast Asia, many facilities were experiencing troubles and propylene supply was seen to be tight.

In the Asia butadiene market, a wait-and-see mood was strong. In Northeast Asia, softening China domestic prices generated uncertainty about market directions ahead and both buyers and sellers were in no rush to engage in trade. As price ideas between buyers and sellers were far apart, it was difficult for deals to be done.