Aromatics

FOB Korea benzene prices were slightly higher than the previous week, following movements in the crude market. But the rise was limited as the spread with derivative styrene monomer (SM) prices was shrinking. Paraxylene (PX) prices were staying at almost the same level from the previous week. Selling interest was strong as supply was expected to increase going forward from new and expanded PX facilities.

Olefins

CFR Northeast Asia ethylene prices increased. Some end-users reportedly had not finished buying December cargoes. On the other hand, sellers focused on term contract discussions for 2020 and availability of spot cargoes was limited. This pushed up the market. Shell was expected to restart its naphtha cracker in Singapore from December after maintenance and some sources showed views that perceptions of scarce supply might recede going forward. In the meantime, other sources pointed out that operating rates at naphtha crackers might be reduced as profitability of derivatives, propylene and butadiene was decreasing.

In the Asia propylene market, CFR Northeast Asia and CFR Southeast Asia prices were unchanged while FOB Korea prices fell slightly. In Asia, talks on December delivery were gradually finishing and few bids and offers were heard. On an FOB kora basis, many makers had moved to lower their stocks so far and selling pressure eased. But as freight costs to China increased, the price spread with the CFR Northeast Asia market widened. One Taiwanese maker sold 5,000mt loading end-November to December via a tender.

The Asia butadiene market rebounded. Cheap cargoes that had been seen previously were no longer available and non-regional cargoes were not ample. As a result, perceptions of supply abundance eased. Further, feedstock naphtha prices remained high. This also pushed up the market. In Southeast Asia, Thailand's PTTGC conducted a sell tender for December loading but eventually, the cargo was said to have been sold to the domestic market.

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