Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis fell in the first-half of the week. In the second half of the week, these prices rebounded slightly. The market moved along with changes in crude prices. Benzene prices were weighed by a fall in profitability of derivatives. For PX, market sentiments were not strong since shipments of downstream polyester products were dull due to the impact of trade war.

Gasoline Component

MTBE prices on an FOB China basis were stable. Since holidays started in China in the second half of the week, players were not in a hurry for sales. For loading from Shandong, selling ideas were heard at $670/mt but buyers did not respond to this. Since demand was low and profitability was falling, independent MTBE makers in China adjusted operations or shut down facilities to decrease production.

Olefins

Ethylene prices on a CFR Northeast Asia basis were stable. Due to holidays in China, South Korea and Japan, discussions for June cargoes were not in full swing and trade was muted. A Qatari cargo was reportedly traded for delivery to China at $770-780/mt. The deal price was said to be relatively low as it was before the holidays and trade volumes of Qatari cargoes were not high.

The Asia propylene market was in a wait-and-see mood toward Labor Day holidays.

In the CFR northeast Asia market, buying interest for imported cargoes was scarce since demand for derivatives was sluggish and China domestic prices were softening.

In the Southeast Asia market, supply was expected to increase going forward while demand for derivative polypropylene was weak. Supply/demand was seen to be slack.

In the Northeast Asia butadiene market, trade was muted throughout the week as China was on holidays from the second half of the week. Before the holidays, an Iranian cargo was reportedly offered to China. Apart from this, sales for cargoes from outside Asia were over, and fresh cargoes for sale on a spot basis were not seen.