Aromatics

Benzene prices on an FOB Korea basis continued to hold steady at high levels. Buying interest tended to strengthen during market downturns, making them less prone to decline compared to crude oil prices, a feedstock cost indicator. Paraxylene (PX) prices on a CFR Northeast Asia basis were firm. There was a strong sense of undervaluation compared to naphtha, a feedstock cost indicator, and PX makers' motivation for operations was weakening. Amidst this, buying interest strengthened on expectations of future supply/demand tightening.

Olefins

Ethylene prices on a CFR Northeast Asia basis softened slightly. This was influenced by China domestic prices trading at relatively cheaper levels compared to overseas prices. In China, as the profitability of derivatives worsened, some petrochemical makers seemed to want to reduce derivative production and sell ethylene instead.

In the Asia propylene market, the sense of supply/demand tightening receded.

In the CFR Northeast Asia market, the sense of supply/demand tightening receded as feedstock prices such as crude oil declined from previous highs and no strength was observed in polypropylene prices, a derivative product. Under these circumstances, market sentiment weakened. In the Southeast Asia market, mixed ideas on prices were heard.

Butadiene prices on a CFR Northeast Asia basis declined. Following a previous sharp rise in butadiene prices, the profitability of derivatives was pressured, and buying interest from derivative makers was receding. The softening of crude oil prices from previous highs, coupled with expectations of lower butadiene prices going forward, was also dampening end-users' buying interest. Views were heard that deals at prices above $2,400/mt became difficult.

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