Aromatics

FOB Korea prices benzene prices decreased sharply in the middle of the week along with a fall in crude prices. On the other hand, CFR Northeast Asia paraxylene (PX) prices moved in a narrow range. As PX and feedstock mixed xylene (MX) prices had already fallen from a high level in early June by more than $200/mt, the fall in the market this week was limited. For MX, the arbitrage for delivery to the US was open but discussions were mainly taking place for August loading cargoes and these cargoes were expected to be delivered to the US after the peak season of gasoline. Therefore, buyers were not aggressive in buying MX.

Olefins

CFR Northeast Asia ethylene prices decreased slightly. Since ethylene derivative futures on the commodity exchange in China softened along with a fall in crude prices in the middle of the week, buying interest for ethylene receded. In trade this week, a deal for delivery to China in July was done at $980/mt. After that, buying interest from end-users weakened further and buying ideas were no longer seen at $950/mt.

The Asia propylene market was quiet. In Northeast Asia, some traders were keen to sell while end-users showed scant buying interest and market sentiment was bearish. On an FOB Korea basis, few bids and offers were heard and prices tracked movements in the CFR Northeast Asia market. In Southeast Asia, some end-users with supply shortage were interested in spot purchase and the market rebounded.

The Asia butadiene market moved down. In Northeast Asia, many end-users had finished buying July delivery and retreated to the sidelines. Further, prices for derivatives such as synthetic rubber fell and market sentiment weakened. In Southeast Asia, Thailand's BST carried out a sell tender for August loading.