Aromatics

Benzene prices on an FOB Korea basis were firm from the middle to the second half of week. In China, refineries underwent maintenance. Further, derivative styrene monomer prices strengthened due to troubles. These were cited as bullish factors. Paraxylene (PX) prices on a CFR Northeast Asia basis were bearish in the middle of the week. The marked followed a fall in futures prices in China.

Olefins

In the CFR Northeast Asia ethylene market, spot trade was muted as negotiations for term contracts for 2026 were ongoing. A South Korean petrochemical makers enhanced production cuts and it postponed the start of negotiations. Another company was expected to conclude negotiations soon. In Southeast Asia, Malaysia's Pengerang Refining and Petrochemical (PRefChem) sold 5,000mt loading Dec 25-26.

In the Asia propylene market, supply was still tight.

In the CFR Northeast Asia market, there were few imported cargoes for sale while end-users were showing buying interest. Therefore, supply/demand was seen to be tight.

In the Southeast Asia market, Pengerang Refining and Petrochemical (PRefChem)'s two residue fluid catalytic crackers (RFFC) were expected to restart on Dec 5 and Dec 8 respectively. For this reason, PRefChem had room to sell January loading cargoes.

Butadiene prices in Asia were not showing sharp changes as of now but views were heard that the market might strengthen going forward. In trade on an FOB basis, a cargo loading in China from the end of January to February was traded at $850/mt. There were perceptions that prices might increase going forward since volumes of deep-sea cargoes to be delivered to Asia might be lower in the future. Along with this, the cargo loading at a forward timing might have been traded at relatively high price.

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