Aromatics

FOB Korea benzene and CFR Northeast Asia paraxylene (PX) prices were mostly unchanged. Since market sentiments for benchmark feedstock naphtha were strong, the price spread between aromatic products and naphtha was shrinking. The upper end of the benzene market was curbed by a fall in prices for styrene monomer (SM), a major derivative. Regarding PX, prices for derivative pure terephthalic acid (PTA) and downstream polyester fibers were bearish. Therefore, it was difficult for PX makers to pass on feedstock costs to products.

Olefins

CFR Northeast Asia ethylene prices were stable from the previous week. Regarding facilities, China's Luqing started operating its ethylene facility. Sailboat restarted its methanol-to-olefins facility. Operating rates of MTO facilities in China were increasing along with relaxation of restriction of power consumption. As supply was expected to increase, buying interest from end-users was not strong. In trade related to prices linked to market quotations, a deal for delivery to China in December was reportedly done at a premium of $15/mt to CFR Northeast Asia quotations.

The Asia propylene market was subdued. In Northeast Asia, price ideas between buyers and sellers were far apart and talks were stymied. Sellers were not keen to sell due to limited availability on hand and high feedstock costs. Buyers showed scant buying interest for imported cargoes since domestic supply in China was ample and derivative polypropylene prices were softening. On an FOB Korea basis, availability was not seen and activity was thin.

In the Asia butadiene market, a wait-and-see mood was strong. In Northeast Asia, amid high feedstock naphtha prices, profit margins could not be made at current butadiene prices and sellers showed no hurry to conduct sales. On the other hand, end-users had enough stocks and were not keen to purchase spot cargoes. In Southeast Asia, one maker conducted a sell tender for December loading.