Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis increased at the beginning of the week but after that, the market was bearish. Aromatic prices changed along with crude prices. In the previous week, the US Court of International Trade decided that tariffs that were introduced by the Trump administration were against the law. But an administration order to withdraw the tariffs was not issued after that. Expectations that trade might be active and the economy might recover receded.

Olefins

Ethylene prices on a CFR Northeast Asia basis showed no change. The US government decided to require exporters to obtain approval when they export ethane from the US to China. Players wanted to check the impact on export of ethane and the market was pervaded by a wait-and-see mood. Market sources showed views that there might not be the impact immediately as operators of ethane crackers in China had secured adequate inventories of ethane or they continued procurement of feedstocks other than ethane.

Propylene prices on a CFR Northeast Asia basis were mostly stable. In South Korea, derivative polypropylene (PP) facilities were experiencing troubles or repairs one after another and inventories were seen to be high. But available vessels were limited. On the other hand, buying interest was not firm either. In Southeast Asia, a PP facility was reportedly shut down since the end of May. This was apparently due to worsening demand.

In the butadiene market on a CFR Northeast Asia basis, activity was muted in general. Since demand and profitability for derivatives were low, buying interest for butadiene was dull. On the other hand, supply was not in surplus and few sellers were in a rush for sales. A South Korean petrochemical maker sold a July loading cargo via a tender. In Southeast Asia, a Thai petrochemical maker conducted a sell tender.

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