Aromatics

The FOB Korea benzene and the CFR Northeast Asia paraxylene (PX) market decreased along with a fall in crude prices in the middle of the week. Regarding benzene derivatives, operation rates of a styrene monomer (SM) facility in Korea were reportedly reduced due to a fall in profitability. In the PX market, slack supply/demand was also a bearish factor.

Olefins

The CFR Northeast Asia ethylene market, trade was muted. Players' focus was shifting to term contract discussions for 2022 and they were less interested in spot talks. In the China domestic market, some petrochemical makers reduced production of derivatives and sold ethylene as profitability of derivatives was falling.

In the Asia propylene market, discussions were stymied as price ideas between buyers and sellers were far apart. In Northeast Asia, sellers showed no hurry to sell as feedstock costs were high and they had limited cargoes on hand. End-users, however, were not keen to buy imported cargoes since domestic supply in China was ample and polypropylene prices were softening. As a result, no deals were reported. In Korea, facilities were undergoing maintenance while a new PP facility started up. Therefore, propylene supply was perceived to be tight.

The Asia butadiene market weakened. In Northeast Asia, new butadiene facilities in Korea and China were starting operations one after another and supply was seen to be plentiful. On the other hand, end-users showed scant interest in spot purchase. On an FOB Korea basis, supply was perceived to be in surplus since Hyundai Chemical would start up its butadiene facility soon and sales to the US were finished.