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Weekly Summary

Petrochemicals: Oct 12-16: Benzene firm on rise in derivative prices

Aromatics

The FOB Korea benzene market was firm since derivative styrene monomer (SM) prices increased. In the SM market, delivery of US cargoes was delayed due to the impact from hurricanes while maintenance was taking place or production was reduced at facilities in Asia. For these reasons, stocks in China decreased and this sent prices higher. The CFR Northeast Asia paraxylene (PX) market was also firm since business conditions of polyester products were good after the holidays.

 

Olefins

The CFR Northeast Asia ethylene market decreased. Going forward, non-regional cargoes would flow in and ethylene facilities in Asia were expected to restart after maintenance and troubles. Therefore, supply was seen to be more plentiful. Under this situation, prices were perceived to fall going forward. In discussions this week, a deal was reportedly done at $870/mt in the middle of the week. But information of an offer at $860/mt was also heard. Possible deal levels seemed to differ depending on the timing of delivery. At the beginning of the week, a cargo to be delivered to Korea in November was reportedly traded at a premium of $20's/mt to CFR Northeast Asia quotations.

 

The Asia propylene market strengthened amid tight supply. In Northeast Asia, although buying interest from Chinese end-users was thin, prices rose due to tight supply of imported cargoes. On an FOB Korea basis, to makers conducted sell tenders for November loading. In Southeast Asia, Petron in the Philippines and PTTGC in Thailand carried out sell tenders.

 

The Asia butadiene market moved up. As availability was limited, few bids and offers were heard and activity was subdued. Although non-regional supply was seen, arrival was further forward from December onwards and buying interest from end-users was not strong. On an FOB basis, one Chinese maker apparently sold November loading.

 

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Tokyo : Petrochemicals Team  Shinnosuke Tagusari   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.