Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis moved in a narrow range. As the US implied that it would impose tariffs against countries that import Russian crude oil. Therefore, demand was expected to rise for crude oil produced in countries other than Russia. For this reason, crude prices were expected to be firm. On the other hand, profitability of derivatives was still low and this was a bearish factor.

Gasoline Component

MTBE prices on an FOB China basis were stable. Sellers apparently finished discussions for cargoes loading until September. 300,000mt loading from the end August to September was reportedly traded at $630-635/mt around the beginning of August.

Olefins

Ethylene prices on a CFR Northeast Asia basis softened slightly at the beginning of the week. But after that, prices were bullish due to firmness in crude prices and China domestic ethylene prices. Further, it was reported that South Korea's YNCC would shut down its No.3 naphtha cracker around Aug 8. Under this situation, sellers were expecting that prices might strengthen going forward. On the other hand, profitability of derivatives was still low. Therefore, buyers were not aggressive to buy and they were unwilling to raise bids. As a result, activity was muted in general.

In the Asia propylene market, supply for Southeast Asian cargoes was ample.

In the CFR Northeast Asia market, buying interest from Chinese end-users for imported cargoes was scarce as China domestic prices were bearish.

In South Korea, YNCC's No.3 naphtha cracker was expected to shut down on Aug 8 due to worsening profitability.

In the Southeast Asia market, Pengerang Refining and Petrochemical (PRefChem)'s two polypropylene facilities were shut down due to troubles and propylene was in surplus.

In the butadiene market on a CFR Northeast Asia basis, prices showed no changes. In trade for cargoes from outside Asia, discussions for US cargoes took place for delivery to South Korea. A Taiwanese petrochemical maker apparently conducted discussions for export. A naphtha cracker in Japan restarted in the first half of the week while it was reported that a naphtha cracker in South Korea would be shut down in the second half of the week. Under this situation, market sources were trying to check supply/demand of butadiene.

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