Aromatics

FOB Korea benzene prices were at similar levels to the end of the previous week. Benchmark feedstock crude prices strengthened and derivative styrene monomer (SM) prices were also bullish as a hurricane hit the US and concerns about supply emerged. These factors supported the benzene market. The paraxylene (PX) market was weighed down by a fall in demand for end products in the domestic market and from overseas due to the spread of COVID-19.

Olefins

CFR Northeast Asia ethylene prices rose further. On the supply side, GS Caltex in Korea and Gulei Petrochemical in China shut down their ethylene facilities for maintenance. On the demand side, since derivative makers' inventories of ethylene and derivatives were decreasing due to the delay in operations of vessels along the Yangzi River in China, buying interest was seen for prompt cargoes. Under this situation, supply/demand tightened and the market was pushed up.

The Asia propylene market softened. While cargoes for September delivery remained unsold, Chinese end-users showed scant buying interest. For October delivery, both buyers and sellers showed no hurry to engage in trade and stayed on the sidelines.

The Asia butadiene market tumbled. In Northeast Asia, sales to the US slowed down and supply was perceived to be ample. On the other hand, end-users held a bearish view and were in no rush to buy. Under this situation, supply/demand slackened.