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Weekly Summary

Petrochemicals: Aug 16-20: Aromatics fall sharply along with crude prices

Aromatics

The aromatics markets fell sharply in the second half of the week, along with a drop in crude prices. Regarding benzene, profitability of derivative styrene monomer (SM) was decreasing and new facilities were scheduled to start up in China. Under this situation, the market was expected to be curbed. Paraxylene (PX) prices were weighed down by a fall in feedstock prices and a decrease in downstream polyester fiber futures.

 

Olefins

The CFR Northeast Asia ethylene market softened due to slack supply/demand. Along with the startup of new ethylene facilities in China and Korea, supply was increasing. On the demand side, ethylene derivative facilities were also starting up at the same time and derivative prices were curbed. As a result, buying interest for ethylene was weakening. In discussions this week, deals for September delivery were seen at $920/mt, $900/mt and $900/mt.

 

The Asia propylene market rose further. Facilities were undergoing maintenance and cargoes continued to be sold outside the region. Moreover, demand from Japan was firm. As a result, supply/demand was seen to be tight. Under this situation, buying interest from Chinese end-users strengthened. In Southeast Asia, some facilities were undergoing turnaround and perceptions of ample supply eased.

 

The Asia butadiene market turned bearish. Sales to outside the region reached a lull and perceptions of supply tightness receded. Further, the derivative synthetic rubber market could not catch up with high butadiene prices and buying interest slackened. In Southeast Asia, Thailand's BST sold a spot cargo loading first-half September.

 

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Tokyo : Petrochemicals Team  Shinnosuke Tagusari   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.