Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis strengthened in the middle of the week along with crude prices. In the previous week, benchmark futures prices for benzene and PX in China were bearish. After these futures prices came closer to a low level, they rebounded slightly. This was also a supporting factor.

Olefins

Ethylene prices on a CFR Northeast Asia moved in a narrow range. It was reported that a US cargo was traded by the previous week for delivery to China. Further, sales of ethylene that was produced at China National Offshore Oil Corp (CNOOC) Ningbo Daxie Petrochemical's deep catalytic cracking (DCC) facility commenced. Since perceptions of tight supply receded, buying interest weakened.

Propylene prices in Asia increased on tight supply. Supply for South Korean cargoes and Southeast Asian cargoes was tight. Meanwhile, buying interest from end-users was observed and supply/demand was perceived to be tight. Under this situation, market sentiments strengthened.

In South Korea, a petrochemical maker sold two October loading cargoes on a spot basis.

In the Asia butadiene market, Taiwan's Formosa Petrochemical sold two October loading cargoes. On the supply side, supply for Southeast Asian cargoes to Northeast Asia was seen to be reduced since a fire broke out at Aster Chemicals and Energy's naphtha cracker in Singapore in late August. On the demand side, buying interest was not strong as futures prices for synthetic rubber in China softened while a major end-user in South Korea was scheduled to conduct maintenance. Under this situation, supply/demand was apparently not that tight.

To view sample report, click on the icon below.