Aromatics

FOB Korea benzene prices fell further from the previous week. In China, an export destination, domestic prices fell back. In the US, end-users were trying to reduce their inventories and demand receded toward year-end. Paraxylene (PX) prices also softened. In Asia, supply was seen to be ample as new facilities were starting up.

Olefins

CFR Northeast ethylene prices strengthened. Until the previous week, selling interest had been strong due to ample supply. But sellers finished talks on cargoes to sell for the time being and selling interest receded. As the spread with benchmark feedstock naphtha prices had shrunk, ethylene prices were seen to be relatively low. As a result, buying interest emerged and the market was pushed up. But available cargoes were not seen and it was difficult to conduct discussions. In Southeast Asia, supply was seen to be scarce. Therefore, CFR Southeast Asia prices were higher than CFR Northeast Asia prices.

In the Asia propylene market, CFR Northeast Asia and FOB Korea prices fell while CFR Southeast Asia prices were unchanged. In Northeast Asia, amid ample supply of Chinese domestic cargoes, buying interest from end-users was thin. But sellers considered high procurement costs and were inactive in sales. Under this situation, prices fell slightly. On an FOB Korea basis, few bids and offers were heard and activity was subdued. In Southeast Asia, one maker was negotiating term contracts for 2020 onwards.

The Asia butadiene market declined. Many end-users had finished buying necessary cargoes until December. In addition, bearish sentiment was strong owing to weakness in the China domestic market. As a result, the market moved down. In the China domestic market, a maker in the Northeast had ample availability but demand was sluggish and the market was bearish.

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