Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis at the beginning of the year were lower than the end of last year. After that, benzene prices rebounded while PX prices fell further. For benzene, derivative ethylbenzene was exported from China to outside Asia and demand was perceived to be firm. On the other hand, PX prices underwent downward correction as the market was perceived to be relatively high due to an increase by the end of last year.

Olefins

Ethylene prices on a CFR Northeast Asia basis were bearish due to weak demand. In China, BASF started up its new ethylene facility while Wanhua Chemical restarted its ethylene facility after completing conversion. Therefore, supply in China was perceived to be ample and buying interest for imported cargoes was weak.

In the Asia propylene market, supply was perceived to be tight.

In the CFR Northeast Asia market, several naphtha crackers in Japan and South Korea were scheduled to enter maintenance and supply was seen to be tight. Under this situation, market sentiments strengthened.

On an FOB Korea basis, discussions for term contracts for 2026 were mostly over and available cargoes on a spot basis were observed. A petrochemical maker sold a spot cargo loading January at a price linked to market quotations. It was expected to conduct sales for February loading this week onwards.

Butadiene prices on a CFR Northeast Asia basis increased sharply. Since Korean end-users had not secured sufficient volumes via term contracts, buying interest for spot cargoes was observed. Firmness in derivative synthetic rubber prices was also a bullish factor. Butadiene prices in the China domestic market were also strengthening and Chinese players were rising selling ideas for export.

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