Aromatics

Trade of aromatics was thin as many countries were on holidays for Lunar New Year. At the beginning of the week, benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis softened slightly since buying interest receded before the holidays started.

Olefins

Ethylene prices on a CFR Northeast Asia basis were stable. Since South Korea, Taiwan and China were on Lunar New Year holidays, discussions were muted. Regardingthe market after the holidays, demand was not clear while supply was expected to remain tight owing to operation adjustment and regular maintenance at ethylene facilities. The arbitrage from the US to Asia was also closed.

Propylene prices on a CFR Northeast Asia basis were bearish due to receding buying interest. But discussions were muted throughout the week as countries including China were on holidays. In Southeast Asia, one line of residue fluid catalytic cracker (RFCC) owned by Malaysia's Pengerang Refining and Petrochemical (PRefChem) was shut down due to troubles.

In the Northeast Asia butadiene market, several cargoes loading in February in Japan were traded recently along with maintenance at derivative facilities. On the other hand, in South Korea, maintenance of butadiene facilities was scheduled to take place in February onwards and supply was perceived to be tight. In Europe and the US, available cargoes were limited due to maintenance. Therefore, supply from outside Asia was also tight.

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