Aromatics

Benzene prices on an FOB Korea basis decreased sharply in the middle of the week as demand for export to China and the US declined. Paraxylene (PX) prices strengthened slightly. Perceptions of surplus supply receded. On the supply side, operation rates of PX facilities were not high while it was the demand season for polyester. There were still concerns about US trade policies against China and market sentiments were not strong.

Olefins

In the CFR Northeast Asia ethylene market, spot trade was muted as discussions for April cargoes were over. In China, new ethylene facilities were expected to start up from March to April and supply was seen to be more ample. Along with this, end-users were expecting that ethylene prices might soften going forward. In the Southeast Asia market, an ethylene maker was conducting sales negotiations for term contracts for the second half of 2025.

Propylene prices on a CFR Northeast Asia basis decreased slightly. Purchases of propylene by Taiwanese end-users along with the shutdown of a residue fluid catalytic cracker (RFCC) in the country were no longer seen. As a result, buying interest weakened. End-users in East China were moving to buy along with a recent fall in prices. But their buying interest was not as strong as the market was pushed up.

In the butadiene market on a CFR Northeast Asia basis, discussions were muted. Discussions for April delivery were over while it was perceived to be too early to start negotiations for May delivery. Further, in China, new butadiene facilities were scheduled to start up. Players wanted to check operations of the facilities and they were taking a wait-and-see stance. In the Southeast Asia market, available cargoes were limited since several naphtha crackers were shut down.