Olefins

Ethylene prices on a CFR Northeast Asia basis increased slightly. Supply was reduced due to production cuts and maintenance at ethylene facilities. In addition, owing to the impact from power failure that occurred in Daesan in South Korea on Feb 25, Lotte Chemical and LG Chem's naphtha crackers and derivative facilities were shut down. For this reason, supply tightened further. A deal for delivery to China was reportedly done at $910/mt.

The Asia propylene market was mostly in a wait-and-see mood.

In the Northeast Asia market, Lotte Chemical and LG Chem's naphtha crackers along with derivative facilities were shut down since power failure occurred in Daesan in South Korea. It might take a long time for LG Chem's facility. Players were paying attention to the restart of the facility.

In the Northeast Asia butadiene market, a wait-and-see mood strengthened as facilities including Lotte Chemical and LG Chem's naphtha crackers in South Korea were shut down in the first half of week and players tried to check the impact on supply/demand. China domestic butadiene prices rebounded. Supply concerns arose due to the shutdown of facilities in South Korea. In addition, as the market had fallen previously and prices were perceived to be relatively low, selling interest receded.

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