RIM Market News >  Weekly Summary

Petrochemicals: Jan 7-11: PX strong on expectations of easing US-China trade conflict

2019/01/14 07:00

Aromatics

The aromatics markets in Northeast Asia were strong along with a rise in crude prices. Among these, discussions for benzene loading Korea lacked firm bids and offers as term contract discussions showed little progress. On the other hand, the mixed xylene (MX) and paraxylene (PX) and markets sharply increased. Since fears that US-China trade conflicts might intensify receded, PTA futures moved up sharply and the feedstock PX market followed movements in the PTA market.

 

Olefins

The CFR Northeast Asia ethylene market softened in the beginning of this year. After that, the market was quiet. As talks on cargoes that would be delivered before Lunar New Year in February had finished, sellers were not in a hurry to sell. On the other hand, end-users were interested in procuring cargoes to be delivered after Lunar New Year but they were not willing to increase their bids. They rather focused on ongoing term contract discussions on a CFR basis. On a CFR China basis, deals were done at $850-880/mt in the beginning of this year. On Jan 7, one prompt cargo was traded at about $840/mt.

 

The Asia propylene market increased. In Northeast Asia, buying was seen for stock building ahead of the Lunar New Year. The China domestic market rose at the start of the week due to perceptions of tight supply but softened later in the week as demand receded. On an FOB Korea basis, one maker conducted a sell tender but the tender was canceled.

 

The Asia butadiene market showed a strong wait-and-see mood. Few bids and offers were heard and activity was subdued. Some sellers had room for spot sale but end-users showed no hurry to buy and talks were slow to progress. The China domestic market strengthened on supply tightness.

 

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Tokyo : Petrochemicals Team  Shinnosuke Tagusari  +81-3-3552-2411
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