Aromatics

Benzene prices on an FOB Korea basis softened. A fall in crude prices was a bearish factor. On the other hand, in China, derivative facilities restarted after completion of maintenance and this supported the benzene market. Paraxylene (PX) prices on a CFR Northeast Asia basis also decreased. There were concerns that demand for downstream purified terephthalic acid (PTA) and polyester might weaken and futures prices for PTA and PX on the Zhengzhou Commodity Exchange dropped. Due to this, the PX market was weighed down.

Olefins

Ethylene prices on a CFR Northeast Asia basis increased slightly. Since troubles were occurring at naphtha crackers in Northeast Asia and Southeast Asia one after another, there were moves to buy to cover the shortage and this supported the market. But some players already finished discussions for September delivery. Therefore, activity was muted in general. In Japan, Mitsui Chemicals' ethylene facility in its Ichihara plant had been expected to restart this week but this was apparently postponed to the end of August or the beginning of September.

In the Asia propylene market, activity was muted in general.

In the CFR Northeast Asia market, buying interest from Chinese end-users for imported cargoes receded as available cargoes in the country were increasing. On the other hand, supply for Southeast Asian cargoes was ample. As a result, supply/demand was perceived to be slack.

The Asia butadiene market was firm.

In China, some petrochemical makers' butadiene facilities were experiencing troubles and buying interest from Chinese end-users for imported cargoes strengthened. Under this situation, a deal for delivery to China in September was done at $1,470/mt.

In the Southeast Asia market, a petrochemical maker conducted a sell tender for September loading.

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