Aromatics

The FOB Korea benzene market fell in the first half of the week but rose back slightly in the second half of the week along with changes in crude prices. The paraxylene market decreased slightly due to a fall in benchmark feedstock crude prices and a drop in PTA futures on the Zhengzhou Commodity Exchange. In China, COVID-19 was spreading again and concerns emerged that demand for downstream polyester might recede.

Olefins

The CFR Northeast Asia ethylene market fell along with slack supply/demand. Recently, new ethylene facilities were starting up in China and Korea and supply was increasing. On the other hand, in areas along the Yangzi River in China, operations of vessels and trucks were restricted to prevent the spread of COVID-19. As a result, it was unclear how much ethylene end-users could receive going forward and buying interest receded. In discussions this week, deals for delivery to China were heard at $930/mt and $910/mt.

The Asia propylene market moved up. As many cargoes in Asia were exported outside the region, perceptions of ample supply receded. On the other hand, operating rates at some facilities in Japan were lowered due to glitches and spot demand from Japan might emerge. Further, buying interest from Taiwan was also seen. Under such circumstances, market sentiment was firm. Nevertheless, the extent of the rise was limited as buying interest from Chinese end-users was lackluster. In Southeast Asia, one maker conducted a sell tender for second-half August loading.

The Asia butadiene market was unchanged. Amid thin supply, sellers showed no hurry to carry out sales. On the other hand, end-users had mostly finished purchasing September delivery and buying interest for imported cargoes was not strong. As a result, a wait-and-see mood pervaded the market. In Southeast Asia, a Thai maker conducted a sell tender for September loading.