Aromatics

The FOB Korea benzene market moved in a narrow range. Demand was weak since derivative styrene monomer (SM) prices were falling. The CFR Northeast Asia paraxylene (PX) market softened. The market was curbed as new and expanded facilities would start operations going forward.

Olefins

The CFR Northeast Asia ethylene market fell due to slack supply/demand. Regarding supply, US cargoes were still flowing into Asia. In China, several new ethylene facilities were scheduled to start up and supply was expected to be more ample going forward. Therefore, buying interest from end-users was weak. In the market this week, deals were heard at $680/mt, $690/mt and $710/mt.

In the Asia propylene market, CFR Northeast Asia and CFR Southeast Asia prices were unchanged while FOB Korea prices rose slightly. In Northeast Asia, sellers held a firm stance owing to tight supply and were reluctant to sell. On the other hand, Chinese end-users were not keen to procure imported cargoes as domestic supply was ample. Under this situation, discussions were thin. On an FOB Korea basis, supply tightness arising from facility maintenance and problems sent the market higher. In Southeast Asia, Thailand's PTTGC conducted a sell tender for September loading.

The Asia butadiene market strengthened. In Northeast Asia, supply was limited and sellers raised their offers. On the other hand, many end-users had procured necessary volumes to some extent but had no choice but to give way to sellers in order to buy imported cargoes. As a result, the market moved up. In Southeast Asia, Thailand's PTTGC carried out a sell tender for September loading.