Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis increased from the previous week as crude prices were bullish throughout the week. Benzene prices were also supported by a sharp rise in US benzene prices in the middle of the week.

Olefins

In the Northeast Asia ethylene market, trade was thin. There were no signs of recovery in buying interest from Chinese end-users. On the other hand, benchmark feedstock naphtha prices were firm and the spread with ethylene prices was shrinking. Therefore, Northeast Asian ethylene makers were considering enhancing production cuts. In trade related to market quotations, a deal for second-half August delivery was concluded at a premium of mid-$20's/mt to CFR Northeast Asia spot quotations.

The Asia propylene market increased slightly.

In the CFR Northeast Asia market, supply was perceived to be tight since facility maintenance was taking place and troubles were occurring one after another. On the other hand, derivative polypropylene prices were firm and supply/demand was perceived to be tight.

In Southeast Asia, a petrochemical maker conducted a sell tender.

The Asia butadiene market strengthened.

The CFR Northeast Asia market was boosted as China domestic prices were firm and buying interest from Chinese end-users was strong. However, market sources perceived that market directions going forward were uncertain as actual demand was not high. As a result, the market only increased slightly.

In Southeast Asia, a petrochemical maker conducted a sell tender for August loading but the tender was cancelled since bids did not match prices that the maker wanted to sell at.