Aromatics

The Asia aromatics market in general followed benchmark feedstock crude prices. Until the middle of the week, the market strengthened. In the second half of the week, the market fell back and after that, recovered slightly. As for paraxylene, supply was ample and the price spread with another benchmark feedstock naphtha was shrinking.

Olefins

The CFR Northeast Asia ethylene market increased due to tight supply/demand for June delivery cargoes. This week, several deals were reported but the details of some of the deals were not confirmed. On the other hand, a deal for delivery to China at $715/mt was confirmed to have been done. Apart from this, a deal for a US cargo was heard at $655/mt. The cargo was said to be delivered from July to August. It was heard that a Northeast Asian end-user bought this cargo to cover its shortage since it was scheduled to conduct maintenance of its naphtha cracker.

The Asia propylene market weakened. In Northeast Asia, talks on June delivery were finishing and the China domestic market was on a downtrend. As a result, buying interst from end-users receded. Further, a large quantity of non-regional cargoes flowing into Asia for June to July delivery was seen as a bearish factor. On an FOB Korea basis, one maker canceled a sell tender for June loading as prices did not meet its expectations. In Southeast Asia, Thailand's PTTGC conducted a sell tender for June loading.

The Asia butadiene market moved down. In Northeast, non-regional supply was plentiful and market sentiment weakened. Some sellers hoped to discuss based on market quotations but no buyers responded. In Southeast Asia, some makers had room to sell but showed no hurry to engage in talks.