Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis strengthened in the first half the week but prices fell after. Changes in prices were along those in benchmark feedstock crude prices. In China, Zhejiang Petrochemical's large-scale PX facility was expected to enter maintenance from the end of March and this also supported PX prices.

Olefins

In the Northeast Asia market, since a fire broke out on Mar 16 at CPC's Linyuan plant in Taiwan, a wait-and-see mood was strong in the first-half of the week. Due to the impact from this, the restart of its No.3 naphtha cracker was postponed to Mar 25 onwards. But in general, buying interest was not strong.

Propylene prices on a CFR Northeast Asia basis decreased due to weak demand. In trade this week, several deals were heard in the range of $830-870/mt. In Southeast Asia, Malaysia's Pengerang Refining and Petrochemical (PRefChem) was expected to shut down its naphtha cracker for maintenance soon but it issued a new sell tender. In addition, propylene facilities in Southeast Asia restarted operations and supply was perceived to be ample.

Butadiene prices on a CFR Northeast Asia basis were firm as supply was tight. Since troubles were occurring and production cuts were taking place at naphtha crackers in Asia, production of feedstock crude C4 (CC4) was decreasing. In Southeast Asia, a petrochemical maker closed a sell tender on Mar 21 for two May loading cargoes of CC4. The sale was along with maintenance at the butadiene facility. In the Southeast Asia market, available cargoes might be limited for the time being.

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