Aromatics

Benzene prices on an FOB Korea basis moved in a narrow range. In the China market, supply was relatively limited while profitability of derivative makers was low. Therefore, bullish and bearish factors coexisted. Paraxylene (PX) prices on a CFR Northeast Asia basis strengthened in the second half of the week, boosted by a sharp rise in futures prices for purified terephthalic acid (PTA) on the Zhengzhou Commodity Exchange in China.

Olefins

Ethylene prices on a CFR Northeast Asia basis were stable. Supply was not seen to be in surplus while derivative makers were not that aggressive to buy and they were unwilling to raise bids. As a result, discussions were at a standstill. A deal was reported at a premium of $10/mt to CFR Northeast Asia spot quotations. As for facilities, Vietnam's Long Son Petrochemicals injected feedstock into its naphtha cracker at the end of the previous week and restarted operations.

In the Asia propylene market, it was reported that South Korean petrochemical makers would reduce production capacity. For this reason, players wanted to check market directions going forward.

In the CFR Northeast Asia market, futures prices for many products increased and market sentiments strengthened since it was reported that South Korean petrochemical makers would reduce production capacity of ethylene by 2.70 mil-3.70 mil mt/year.

In the Southeast Asia market, a Malaysian petrochemical company sold spot cargoes as its polypropylene facility was shut down due to troubles and propylene supply was in surplus.

In the butadiene market on a CFR Northeast Asia basis, trade was dull. There were apparently a few available cargoes in the market but it was difficult for deals to be concluded since buying ideas from end-users was low.

In Southeast Asia market, an vailable cargo of butadiene appeared as Vietnam's Lon Son Petrochemicals resumed operations of its naphtha cracker.

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