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Petrochemicals: Jul 1-5: Benzene firm on rise in US market

2019/07/08 07:00

Aromatics

The FOB Korea benzene market was firm. Since benzene prices in the US increased, players thought about export to the country and this became a bullish factor. The CFR Northeast Asia paraxylene (PX) market rose sharply in the first half of the week but the market fell back in the second half of the week along with movements in PTA futures.

 

Olefins

Trade for ethylene on a CFR Northeast basis was sluggish. Both sellers and buyers tried to determine market directions going forward and took a cautious stance. It seemed that there was limited room for ethylene prices to decrease, considering benchmark feedstock naphtha prices. On the other hand, it was difficult to pass on costs of ethylene to many derivatives if ethylene prices increased. Further, new ethylene facilities would start operations soon. These factors capped the upside of the market. Under this situation, few bids and offers were heard.

 

In the Asia propylene market, CFR Northeast Asia and CFR Southeast Asia prices rose slightly while FOB Korea prices softened. In Northeast Asia, prices were boosted by firmness in the China domestic market and high crude prices. But as supply was expected to increase going forward, buying interest from end-users was not strong. In Korea, operations at naphtha crackers were recovering and perceptions of tight supply eased. In Southeast Asia, few bids and offers were heard and prices tracked movements in the CFR Northeast Asia market.

 

The Asia butadiene market fell. Market sentiment weakened owing to poor demand. Although supply of Asian cargoes was not ample, the derivative synthetic rubber market softened. Moreover, non-regional cargoes were available and buying interest from end-users was weak.

 

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