Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis were bullish throughout the week due to the strength in benchmark feedstock crude prices. On the other hand, in the downstream market, there was delay in passing on a rise in aromatic prices and profitability was falling. This was a bearish factor.

Olefins

In the CFR Northeast Asia ethylene market, demand was not strong as the economy in China, a major consuming country, was slow. In Taiwan, ethylene was in shortage since the restart of CPC's No.3 ethylene facility was postponed and operations of derivative facilities were adjusted. On the other hand, as CFR Southeast Asia prices were relatively high, selling interest from Northeast Asia to Southeast Asia was seen.

In the Northeast Asia propylene market, Taiwan's Formosa Petrochemical (FPCC) conducted a buy tender. As its naphtha cracker was shut down and the residual fluid catalytic cracker (RFCC) entered maintenance, supply for propylene was seen to be tight. In the Southeast Asia market, Indonesia's Pertamina and Malaysia's Pengerang Refining and Petrochemical conducted sell tenders. Therefore, supply was perceived to be ample.

Butadiene prices on a CFR Northeast Asia basis were bullish due to tight supply. As production cuts were taking place at naphtha crackers and the use of liquefied petroleum gas (LPG) as a feedstock was increasing, production of crude-C4, a feedstock of butadiene, was falling. In Southeast Asia, a butadiene maker conducted a sell tender for loading Apr 20-24.

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