Aromatics

FOB Korea benzene prices softened along with weakness in US benzene prices. On the other hand, the China domestic benzene market was recently firm and this might push up FOB Korea prices going forward. Paraxylene (PX) prices increased on some days but decreased on other days. The price spread between PX and benchmark feedstock naphtha remained narrow.

Olefins

CFR Northeast Asia ethylene prices softened. Deals for China delivery were reportedly done at $650/mt in the previous week and the current week respectively. But some end-users were willing to accept prices higher than this level. CFR Southeast Asia prices were higher than CFR Northeast Asia prices. But firm discussions were not seen.

The Asia propylene market softened. With the peak of the maintenance season passing, perceptions of tight supply eased. As for demand, buying interest for imported cargoes was thin due to slack supply/demand in the China domestic market. In other Northeast Asian countries as well, end-users gradually finished covering supply shortfall caused by maintenance. Deals were reportedly done at $880-910/mt. In Southeast Asia, Shell's naphtha cracker in Singapore was under maintenance and derivative facilities were being expanded. Supply/demand was therefore tight and the spread with the CFR Northeast Asia market narrowed.

The Asia butadiene market dropped slightly. While perceptions of tight supply arising from maintenance and troubles receded, demand remained sluggish. Further, non-regional cargoes that had been traded would arrive from November onwards and supply was seen to be ample. Under this situation, sources reckoned that possible deal levels were in the range of $1,000-1,050/mt. Further, Pengerang Refining and Petrochemical (PRefChem) conducted a sell tender for crude C4 (CC4) as its butadiene extraction facility could not produce on-spec products.

Subscription

Free Trial

Sample of daily report