Aromatics

The FOB Korea benzene market was firm on an increase in the US benzene market. The US market was rising sharply because of concerns about supply due to a fire that occurred at ExxonMobil's Baton Rouge refinery. On the other hand, the paraxylene (PX) market moved in a narrow range. Benchmark feedstock crude prices increased from recent low levels. But downstream demand was perceived to recede due to the impact from the new coronavirus and this weighed on the market.

Olefins

The CFR Northeast Asia ethylene market decreased. Due to the impact from the new coronavirus, Chinese end-users refrained from buying. On the other hand, as some petrochemical makers raised operation rates from February, supply/demand slackened. Under this situation, deals for March delivery were concluded at $740-770/mt in the first half of the week. In the second half of the week, it was reported that Korean petrochemical makers reduced production at naphtha crackers due to receding demand and a fall in the olefin market.

The Asia propylene market fell. In Northeast Asia, owing to the new coronavirus outbreak, demand from China receded. In China, run rates at many propylene and derivative facilities were low and supply/demand was perceived to be slack. Under such circumstances, buyers had no tank space and buying interest for imported cargoes was thin. The FOB Korea and CFR Southeast Asia markets tracked movements in the CFR Northeast Asia market.

The Asia butadiene market declined. In Northeast Asia, a number of derivative facilities in China were shut down or reduced production due to the new coronavirus outbreak. As a result, butadiene supply was in surplus. In Southeast Asia, Thailand's PTTGC conducted a sell tender for March loading.