Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis were bearish until the first half of the week since crude prices fell after the ceasefire between Israel and Iran. Concerns about supply along with the tense situation in the Middle East receded and this was also a bearish factor.

Gasoline Component

MTBE prices on an FOB China basis decreased further along with a fall in crude prices. In China, production capacity was surplus while demand as a gasoline component was not strong. Supply/demand was perceived to be in slack. Taiwan's Formosa Petrochemical sold a 10,000mt cargo loading from the end of July to August. The cargo was reportedly traded at a price linked to FOB Singapore spot quotations.

Olefins

The ethylene market on a CFR Northeast Asia basis was pervaded by a wait-and-see mood since the market situation changed sharply. Prices for benchmark feedstock crude and naphtha softened. In the middle of the week, restrictions of export of ethane from the US to China were practically lifted. In the China domestic market, concerns about production of ethylene at ethane crackers receded and prices softened.

In the Asia propylene market, a deal for delivery to Taiwan was reported at a high price. In Taiwan, CPC's residue fluid catalytic cracker (RFCC) was shut down due to troubles. Under this situation, a prompt cargo was traded for delivery to Taiwan at a relatively high price.

On an FOB Korea basis, a petrochemical maker conducted a sell tender for July loading. Another petrochemical maker also sold a spot cargo loading July. As some derivative facilities were undergoing maintenance, supply for propylene was perceived to be in surplus.

In the butadiene market on a CFR Northeast Asia basis, trade was muted as available cargoes were limited. In South Korea, troubles reportedly occurred at a petrochemical maker's butadiene facility.

In Southeast Asia, a Malaysian petrochemical maker reportedly cancelled a sell tender due to troubles at its butadiene facility.

In the China domestic market, butadiene prices were bearish as supply for butadiene was ample.

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