Aromatics

Benzene prices on an FOB Korea basis moved in a narrow range. The market was supported by an increase in crude prices. But prices lacked upward momentum as buying interest from China retreated. Paraxylene (PX) prices on a CFR Northeast Asia basis strengthened as perceptions of surplus supply receded.

Gasoline Component

MTBE prices on an FOB China basis softened due to a fall in feedstock costs and surplus supply. Some sellers were reportedly discussing for cargoes loading from the end of June to July for delivery to South America. Discussion levels were heard at $630-670/mt.

Olefins

Ethylene prices on a CFR Northeast Asia basis were unchanged. South Korea and Japan were on holidays until the first half of the week while profitability of derivatives was still low. Under such circumstances, buying interest was weak. In the Southeast Asia market, Lotte Chemical Indonesia was expected to start up its ethylene facility from late May. Further, a facility that had been shut down was scheduled to restart. Supply was expected to increase.

In the Asia propylene market, a wait-and-see mood was strong.

In the CFR Northeast Asia market, trade was muted as several countries were on holidays until the first half of the week. Demand was scarce. Meanwhile, sellers also had few cargoes and they were not in a hurry for sales. Under this situation, trade was thin.

The Asia butadiene market strengthened.

In the CFR Northeast Asia market, discussion levels increased since China domestic prices were firm recently and there were few imported cargoes for sale. Selling ideas for a Taiwanese cargo were reported at $1,070/mt. Fresh cargoes from outside the region were not observed.