Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis were firm due to strength in feedstock costs. For benzene, demand for styrene monomer (SM) exported from China was good and this was also a bullish factor. For PX, supply/demand was tight. The spread with benchmark feedstock naphtha prices was wide.

Olefins

Ethylene prices on a CFR Northeast Asia basis strengthened. Production adjustments were taking place and turnaround was expected to be conducted at several ethylene facilities in Northeast Asia and Southeast Asia. Therefore, supply for ethylene was limited. Under this situation, the spread with benchmark feedstock naphtha prices shrank and prices for ethylene were perceived to be relatively low. As a result, buying interest appeared in Northeast Asia and Southeast Asia and prices were pushed up. In the middle of the week, buying ideas were heard at $710/mt in Northeast Asia and $720/mt in Southeast Asia.

In the Asia propylene market, supply was tight.

In the CFR Northeast Asia market, no players were in a rush to buy although Lunar New Year holidays were over in China. In the FOB market, CPC conducted a sell tender for April loading.

In the Southeast Asia market Pengerang Refining and Petrochemical (PRefChem)'s No.2 residue fluid catalytic cracker (RFCC) was still shut down and supply was seen to be tight. As a result, market sentiments strengthened.

In the butadiene market on a CFR Northeast Asia basis, prices were not showing changes. As for facilities, production adjustments were taking place at a naphtha cracker in Taiwan and a naphtha cracker in Japan were shut down to repair the malfunctions. Therefore, supply for butadiene was perceived to be tight. But buying interest for imported cargoes was not seen to be strong.