Aromatics

The FOB Korea benzene market and the CFR Northeast Asia paraxylene (PX) market moved in a narrow range. As economic activity was restarting in the world after the COVID-19 outbreak, demand was expected to recover. On the other hand, along with the startup of new refineries in China, supply was expected to increase and the market was curbed.

Olefins

The CFR Northeast Asia ethylene market showed little change. On the demand side, buying interest was unlikely to rise as many derivatives were not profitable. Further, sellers were not in a hurry to sell and were taking a wait-and-see stance. In the China domestic market, an August delivery cargo was traded at a price linked to market quotations. On the other hand, at fixed prices, no progress in discussions was seen.

The Asia propylene market was unchanged. In Northeast Asia, with China domestic prices on a downtrend, buying interest from end-users receded. Sellers, however, showed no hurry to engage in trade as supply was seen to be tight. Under this situation, talks were thin and activity was subdued. On an FOB Korea and a CFR Southeast Asia basis, bids and offers were not heard and a wait-and-see mood was strong. In China, players were paying attention to the startup of propane dehydrogenation (PDH) plants of Huahong and Zhejiang Petrochemical.

The Asia butadiene market increased. As supply was tight and feedstock costs were high, sellers adopted a bullish stance. On the other hand, buying interest from Korean end-users strengthened and discussion levels moved up. In Southeast Asia, a Thai maker and a Malaysian maker sold August loading via tenders.