Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis rebounded in the second half of the week. As crude prices hit the bottom after a sharp fall due to trade friction between China and the US, perceptions that prices might soften going forward receded. As a result, players were buying actively to cover the short position.

Gasoline Component

MTBE prices on an FOB China basis were stable, as situation going forward was unclear due to intensifying trade friction, export from China was slowing down. Some Chinese MTBE makers reduced production or shut down their facilities as a response to such situation.

Olefins

Ethylene prices on a CFR Northeast Asia basis were at a similar level to the previous week. Since the Chinese government raised tariffs on products imported from the US, players were paying attention to how Chinese petrochemical makers that own ethane crackers would respond to this. Under this situation, a wait-and-see mood was strong. In trade this week, a cargo loading from South Korea in May was traded at a discount of the low $40's/mt.

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

In the CFR Northeast Asia market, both sellers and buyers were not in a hurry for trade.

In trade on an FOB basis, a Taiwanese petrochemical maker sold 20,000mt loading from the end of April to the end of May on a spot basis.

On an FOB Korea basis and on a CFR Southeast Asia basis, the market was in a wait-and-see mood.

In the Asia butadiene market, prices decreased further. In the CFR Northeast Asia market, buying interest was receding since the situation going forward was uncertain and China domestic prices were falling sharply. In the second half of the week, selling ideas were reportedly cast for delivery to Taiwan. But many sellers apparently retreated to the sidelines as current prices were perceived to be low.