Petrochemicals: Mar 3-7: Ethylene falls slightly on softening feedstock costs
Aromatics
Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis were bearish due to softening crude prices. In the PX market, the demand season for polyester was expected to start going forward and this supported prices.
Olefins
Ethylene prices on a CFR Northeast Asia basis decreased slightly. Supply was still perceived to be tight but as benchmark feedstock crude and naphtha prices softened, views emerged that the market might fall going forward. For this reason, end-users refrained from buying. As for facilities, Lotte Chemical's naphtha cracker in Daesan that had been shut down due to power failure restarted.
In the Asia propylene market, CFR Northeast Asia prices softened while CFR Southeast Asia prices strengthened.
In the CFR Northeast Asia market, buying interest from Chinese end-users was receding and market sentiments were weak.
In the Southeast Asia market, several propylene facilities were shut down due to worsening profitability. In addition to this, restart after maintenance of a residue fluid catalytic cracker (RFCC) was delayed. As a result, supply of propylene was in shortage.
In the CFR Northeast Asia butadiene market, market sentiments weakened since demand was sluggish although available cargoes were limited. In the middle of the week, a Japanese cargo was reportedly traded for delivery to China.
In the Southeast Asia market, a Malaysian petrochemical maker showed buying interest for butadiene to restart its derivative facility.
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