Aromatics

FOB Korea benzene prices were moving in the low $400's/mt. Demand was not strong. As supply was expected to increase from new and expanded facilities in China, buying interest was unlikely to rise. In the CFR Northeast Asia paraxylene (PX) market, market directions were unclear. Since new and expanded PX facilities would start up, buying interest was unlikely to go up. In the middle of the week, players moved to cover short positions for September delivery and the spread between September delivery and October delivery prices shrank.

Olefins

The CFR Northeast Asia ethylene market softened. As for supply, cargoes from Europe and the US were still flowing in. Further, several new ethylene facilities were scheduled to start operations in China and buying interest from end-users was weak. In recent talks, two deals were reportedly done at $750/mt by the previous week.

The Asia propylene market fell slightly. In Northeast Asia, buying interest from Chinese end-users receded. With new propylene and polypropylene facilities in China scheduled to start up, Chinese end-users held a bearish view and showed scant buying interest for imported cargoes. This sent the market lower. But supply of imported cargoes remained tight and sellers were reluctant to reduce their offers. In Southeast Asia, Thailand's PTTGC conducted a sell tender for second-half August loading.

The Asia butadiene market was quiet. In Northeast Asia, availability was not seen and both buyers and sellers showed no hurry to engage in trade. Non-regional supply decreased and butadiene production in Asia was reduced due to maintenance. As a result, supply was tight. On the other hand, end-users had procured necessary cargoes to some extent up until September and no buyers were in a hurry to purchase. On an FOB Korea and a CFR Southeast Asia basis, few bids and offers were heard and activity was thin.