Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis fell sharply in the first half of the week along with a decrease in crude prices. After that, prices rebounded slightly as crude prices recovered but the market was bearish in general. For benzene, operation rates of derivative facilities decreased and this was also cited as a bearish factor. For PX, supply/demand was perceived to be slack. Supply was increasing since the high demand season for gasoline was over while demand for polyesters was low at this moment.

Olefins

In the Northeast Asia ethylene market, trade for spot cargoes was muted in general as term contract negotiations for 2024 were ongoing. But buying interest was observed from China. Due to the restriction of navigation at the Panama Canal, the delivery of ethane from the US to Asia was delayed. Under this situation, operation rates of ethane crackers in China were low and ethylene was in shortage. This apparently stimulated the buying interest.

Propylene prices on a CFR Northeast Asia basis showed no change. Many South Koran makers were conducting term supply negotiations for 2024 and spot discussions were muted. In China, operation rates of propane dehydrogenation (PDH) facilities were adjusted due to worsening profitability and malfunctions. But production capacity was increasing along with the startup of new facilities and supply was still high.

In Southeast Asia, the market was muted. Pengerang Refining and Petrochemical (PRefChem) closed a sell tender on Nov 30 for 5,000mt of refrigerated cargoes loading Dec 4-5.

In the butadiene market on a CFR Northeast Asia basis, movements were thin as discussions for December cargoes were over. For January delivery there was a 2,000-2,500mt of available cargo from Europe. Selling ideas for this cargo were cast at $975/mt it was uncertain whether a deal was concluded.