[Aromatics]

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis continued to remain at high levels. With no clear prospect of resolution for the dispute between the US and Iran, buying interest emerged on price dips, but players were not aggressively chasing high prices.

[Olefins]

Ethylene prices on a CFR Northeast Asia basis softened. Chinese petrochemical makers, in the wake of worsening profit margins for ethylene derivatives, reduced derivative production and intensified their selling interest for ethylene. However, as profit margins for ethylene derivatives also worsened for petrochemical makers in other Asian countries, no aggressive buying activity was observed. Only players needing to maintain derivative production were buying, and perceptions of supply/demand tightness temporarily eased.

The Asian propylene market strengthened, bolstered by tight supply/demand. In the CFR Northeast Asia market, in addition to South Korean end-users, Taiwanese end-users were also showing buying interest for imported cargoes. Meanwhile, with spot offers limited to Chinese-origin cargoes, supply/demand was tight. In the Southeast Asia market, with several naphtha crackers undergoing shutdowns or production cuts, supply was perceived to be tight. Under these circumstances, Southeast Asian end-users were also showing buying interest for Chinese-origin cargoes.

Butadiene prices on a CFR Northeast Asia basis sharply declined along with receding buying interest. Northeast Asian end-users had already covered their required volumes for May arrival and have retreated to the sidelines. In South Korea, some petrochemical makers were raising naphtha cracker operating rates, and domestic butadiene supply was expected to recover. Consequently, demand for imported cargoes in South Korea might decrease.

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