Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis were bullish from the first half to the middle of the week mainly because of an increase in crude prices. For PX, demand was expected to increase along with the startup of a new PTA facility and this also supported the market. On the other hand, the spread between prices for PX and PTA was narrow and this was seen to be a bearish factor.

Gasoline Component

MTBE prices on an FOB China basis decreased further. In Shandong in China, some MTBE facilities restarted along with completion of maintenance. Therefore, supply was perceived to be ample and this weighed on the market.

Olefins

Ethylene prices in the CFR Northeast Asia spot market softened owing to a fall in China domestic prices. In the previous week, a South Korean cargo was traded for delivery to China at $820/mt. As export of ethane from the US to China resumed, supply for ethylene in the China domestic market was recovering. Along with this, China domestic prices were bearish.

In the Asia propylene market, Southeast Asian petrochemical makers had spot cargoes for sale.

In the CFR Northeast Asia market, buying interest from Chinese end-users was scarce and trade was muted.

In the Southeast Asia market, a Malaysian petrochemical maker conducted sell tenders for prompt cargoes.

Butadiene prices on a CFR Northeast Asia basis strengthened as futures prices for synthetic rubber in the China domestic market were firm.

As for tenders, a Malaysian maker reportedly sold a cargo loading at the end of July. In the second half of the week, selling interest for August cargoes was seen from petrochemical makers in Thailand and Taiwan.

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