Aromatics

Benzene prices on an FOB Korea basis were firm along with strength in benzene prices in China and the US. In the China domestic market, buyers moved to replenish inventories toward Lunar New Year. Paraxylene (PX) prices were bearish. Supply was stable while many factories producing end-products would be shut down before Lunar New Year. Therefore, supply/demand was perceived to be slack.

Olefins

Ethylene prices on a CFR Northeast Asia basis increased further. Supply remained tight as Northeast Asian ethylene makers were still conducting production cuts and the inflow of cargoes from the US was decreasing. Apart from this, strength in benchmark feedstock naphtha prices was also a bullish factor. In trade this week, a Northeast Asian cargo to be delivered to China in February was traded at $955/mt. For April delivery, a US cargo was traded at $950/mt.

In the Asia propylene market, trade before Lunar New Year was mostly over. Supply was perceived to be tight while buying interest from end-users was not strong either.

The Asia butadiene market was bullish. In the Asia market, available cargoes were limited but many end-users had not finished buying for March delivery. As a result, supply/demand was perceived to be tight.