Aromatics

FOB Korea benzene prices were higher than the previous week but profitability was still low considering benchmark feedstock crude and naphtha prices. As the benzene market in the US and China, which are export destinations, was sluggish, FOB Korea prices were capped. The spread between paraxylene (PX) prices and feedstock costs remained narrow as PX prices were weighed down by perceptions of ample supply along with the startup of new PX facilities. Hengyi confirmed on-spec of PX at its facility in Brunei. In China, Zhejiang Petrochemical was expected to start up a new PX facility by year-end.

Olefins

In the ethylene market on a CFR Northeast Asia basis, firm bids and offers were not confirmed. Talks shifted to December cargoes and buyers were showing buying interest but available cargoes were not seen as of now. Under this situation, supply/demand was perceived to be tight. Since many players were attending an olefin industry conference, bids and offers were not seen. In Southeast Asia, cargoes within the region were limited. For this reason, sources saw that selling ideas for delivery to Southeast Asia could be indicated at prices linked to CFR Northeast Asia quotations.

The Asia propylene market was unchanged. With an olefins conference taking place in Huizhou, China, players were limited and activity was thin. Regarding supply, as some makers in Korea and Southeast Asia were conducting maintenance, availability of imported cargoes was not ample. As a result, sellers showed no hurry to sell by lowering their offers. On the other hand, as domestic supply was plentiful, Chinese end-users held a bearish view and showed scant buying interest for imported cargoes. Under this situation, discussions were stymied.

The Asia butadiene market fell. Facility maintenance had passed its peak and Asian supply was recovering. Further, many non-regional cargoes were seen. Supply was therefore plentiful. On the other hand, amid sluggish demand for derivative synthetic rubber, buying interest for butadiene was lackluster. Under such circumstances, supply/demand was slack and market sentiment weakened. In Southeast Asia, two makers sold December loading cargoes via tenders.

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