[Aromatics]

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis strengthened sharply. Since the US and Israel attacked Iran, Iran declared the closure of the Strait of Hormuz. Several tankers were attacked and supply chain of crude oil, naphtha and aromatic products were cut off. Since operations of production facilities in Asia were uncertain, supply concerns were rising.

[Olefins]

Ethylene prices on a CFR Northeast Asias basis increased sharply. It was difficult for petrochemical makers to procure feedstock naphtha and liquefied petroleum gas (LPG) from the Middle East. In South Korea, YNCC declared force majeure. In Southeast Asia, Chandra Asri and PCS also declared force majeure. Supply concerns for ethylene were rising.

In the Asia propylene market, prices increased due to the worsening situation in the Middle East.

In the Northeast Asia market, a sell tender for 3,200mt loading in April that was conducted by Taiwan's CPC was awarded at a price linked to market quotations.

In South Korea, several petrochemical makers reduced production due to concerns about supply of feedstocks. Some companies declared force majeure on supply.

In the Southeast Asia market, some petrochemical makers declared force majeure as well. A sell tender issued by Malaysia's Pengerang Refining and Petrochemical (PRefChem) was cancelled due to concerns about feedstock supply.

Butadiene prices on a CFR Northeast Asia basis rose sharply. Due to concerns about supply of feedstocks along with the worsening situation in the Middle East, operation rates of facilities in Northeast Asia including naphtha crackers were falling. Owing to the shortage of supply for butadiene, buying interest strengthened. In the middle of the week, a Chinese cargo was reportedly traded for delivery to South Korea. Chinese suppliers apparently had some available cargoes.

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