Aromatics

Aromatics prices in Northeast Asia increased further compared to the previous week. As many refineries were undergoing maintenance and demand for gasoline was high, aromatics were used as feedstocks of gasoline. Further, as toluene and mixed xylene (MX) prices in the US strengthened, Asian cargoes were exported to the US. This contributed to tight supply/demand. In the US, benzene prices were also rising sharply and FOB Korea prices were moving at high levels.

Olefins

Ethylene prices on a CFR Northeast Asia basis softened from the previous week. Lockdowns in Shanghai in China were lifted and derivative prices were on an uptrend but demand for ethylene was apparently not recovering. Since Northeast Asian ethylene makers had room to sell and troubles occurred at derivative facilities in Taiwan, ethylene was in surplus. In trade this week, cargoes to be delivered to Northeast Asia were traded at $1,030/mt and $1,000/mt.

In the Asia propylene market, a wait-and-see mood was strong. In Northeast Asia, selling pressure eased and sellers showed no hurry to engage in trade. On the other hand, although end-users showed buying interest, firm bids were not heard. In Korea, with facilities cutting production and feedstock costs at high levels, some petrochemical makers considered buying in the spot market to maintain operations at derivative facilities.

The Asia butadiene market was firm. In Northeast Asia, supply remained tight and sellers adopted a bullish stance. Although end-users were interested to buy, they were unsure of future market directions and hoped to discuss based on market quotations. In Southeast Asia, Thailand's PTTGC conducted a sell tender for July loading.