Aromatics

FOB Korea benzene prices were staying at almost the same level compared to the previous week. Prices were corresponding to feedstock costs and were supported by demand for delivery to China due to a decrease in inventories in East China. The paraxylene market was firm. As the spread with feedstock costs had shrunk and paraxylene prices were seen to be relatively low, buying interest was stimulated.

Olefins

CFR Northeast Asia ethylene prices were firm. End-users were showing buying interest to procure necessary cargoes for December. On the other hand, as ethylene prices had been relatively low compared to feedstock naphtha, many petrochemical makers had been refraining from selling. For this reason, available cargoes were limited and supply/demand was perceived to be tight. A rumor was heard that a deal for delivery to China was done at $810/mt in the middle of the week but sources saw that this price was still relatively low. On an FOB Taiwan basis, Formosa Petrochemicals Corp (FPCC) issued a sell tender for a cargo loading from the second half of November to the first half of December. The company was seen to have room to sell due to maintenance at its derivative facilities. The tender was reportedly awarded at $772/mt on an FOB Taiwan basis.

The Asia propylene market softened. Market sentiments were weak as buying interest from Chinese end-users was receding. Since supply within the country was ample, Chinese end-users focused on buying domestic cargoes and buying interest in imported cargoes were not strong. On the other hand, makers were in a rush to reduce their inventories before the end of the year. On an FOB Korea basis, one maker sold a cargo loading in December on a spot basis via a tender.

The Asia butadiene market fell due to perceptions of slack supply/demand. Supply was seen to be ample as maintenance at butadiene facilities in Asia had almost finished and there were many available cargoes from outside the region. Further, supply from Japan was in surplus and players were selling spot cargoes. In Southeast Asia, a maker started supplying butadiene from a new facility. But cargoes from the facility were said to be off-spec.

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