Aromatics

Benzene prices on an FOB Korea basis softened in the first half of the week. But in the second-half of the week, prices increased slightly. A rise in inventories weighed on the market. On the other hand, strength in futures prices for styrene monomer on the Dalian Commodity Exchange was a supporting factor. Paraxylene (PX) prices on a CFR Northeast Asia basis increased in the middle of the week since PX makers were adjusting operations and perceptions of surplus supply receded.

Olefins

In the ethylene market on a spot basis, it was time to conduct negotiations for December cargoes but activity was muted. On the supply side, ethylene makers were not under selling pressure since they were scheduled to conduct facility maintenance and production cuts going forward. Meanwhile, buyers were not active in procurement as Lunar New Year holidays were approaching.

In Southeast Asia, Malaysia's Pengerang Refining and Petrochemical (PRefChem) sold two cargoes from the end of last year to the beginning of this year. Its ethylene glycol facility was experiencing troubles and this might be a reason for the sales, reported market sources.

In the Asia propylene market, supply was perceived to be tight.

In the Northeast Asia market, several propylene facilities in South Korea were shut down due to regular maintenance or troubles and supply for propylene was perceived to be tight. In addition, supply of China domestic cargoes was also tight. Under such circumstances, prices strengthened slightly.

In the Southeast Asia market, a Malaysian petrochemical makers sold several January loading cargoes via tenders.

In the butadiene market on a CFR Northeast Asia basis, discussions were shifting to March cargoes but firm bids wand offers were not heard.

In the Southeast Asia market, selling interest was seen from petrochemical makers in Thailand and Malaysia.

China domestic prices were firm until the first half of the week due to facility troubles and other reasons. But prices softened slightly in the second half of the week due to concerns about high prices.

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