Aromatics

The FOB Korea benzene market moved along with the crude market amid ample supply. Production of benzene was expected to increase going forward due to the startup of new and expanded refineries in China. This seemed to curb the market. The CFR Northeast Asia paraxylene (PX) market strengthened in the middle of the week as PTA futures rose on the Zhengzhou Commodity Exchange. But supply was ample, similar to benzene, and the spread with benchmark feedstock naphtha prices was still narrow.

Olefins

The CFR Northeast Asia ethylene market increased sharply. Due to the impact from a hurricane that hit the US, many petrochemical facilities were shut down in areas including the state of Louisiana. Therefore, concerns about ethylene supply were rising. Further, since the arbitrage from the US to Asia was closed owing to firm US ethylene prices and maintenance of several ethylene facilities was scheduled to take place in Asia, supply was perceived to be tight. Under this situation, buying ideas were heard at $750-780/mt while selling ideas were at $850/mt.

The Asia propylene market moved up. In Northeast Asia, amid supply tightness, sellers showed no hurry to sell and took a wait-and-see stance. On the other hand, end-users that had no finished buying necessary cargoes had no choice but to bid up. Under this situation, market sentiment strengthened.

The Asia butadiene market strengthened. As availability was limited, sellers adopted a bullish stance and raised offers to $700/mt and above. On the other hand, end-users still had spot demand. Under such circumstances, supply/demand tightened and the market rose.