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Weekly Summary

Petrochemicals: Aug 23-27: Butadiene softens, sales to outside the region recede

Aromatics

The FOB Korea benzene market moved in a narrow range. Since crude prices rebounded, the market briefly strengthened. But the market was pressured by receding demand for derivatives. The CFR Northeast Asia paraxylene (PX) market increased slightly along with a rise in crude prices. A rise in PTA futures and polyester futures also pushed up PX prices.

 

Olefins

The CFR Northeast Asia ethylene market strengthened. In China, some ports were closed to prevent the spread of COVID-19 while some other ports were congested and operations of vessels were disrupted. Under this situation, considering the delay of vessels, some end-users apparently had to indicate bids at relatively high prices. This was said to be a reason for the rise in the market. In the second half of the week, a cargo to be delivered to China in September was reportedly traded at $900/mt but views were heard that this price was at the lower end of possible deal levels.

 

The Asia propylene market was quiet. As supply was tight, sellers adopted a firm stance and were unwilling to lower their offers. On the other hand, end-users showed scant buying interest as the derivative polypropylene market was softening.

 

The Asia butadiene market was on a downtrend. As the arbitrage from Asia to the US was closed, supply was increasing. Therefore, end-users were in no hurry to buy. Sellers, however, were not under selling pressure and showed no rush to engage in trade. A wait-and-see mood was strong.

 

PetChem Wkly0827.png

 

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