[Aromatics]

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis both strengthened in the latter half of the week. This was in the wake of a rise in crude oil prices, which serve as an indicator for raw material costs, amidst a lack of progress in peace negotiations between the US and Iran. Furthermore, declarations of force majeure by several manufacturers in Asia also served as a bullish factor.

[Olefins]

Ethylene prices on a CFR Northeast Asia basis and CFR Southeast Asia basis both declined. Amidst declining profitability of derivative products, Chinese petrochemical manufacturers reduced production of derivatives and began selling surplus ethylene, leading to a loosening of supply/demand. Meanwhile, one naphtha cracker owned by Taiwan's CPC was shut down due to troubles. Following this, multiple cargoes were purchased for May delivery.

In the propylene market in Asia, demand was receding. In the CFR Northeast Asia market, some petrochemical manufacturers in South Korea were raising their naphtha cracker operating rates, resolving the propylene supply shortage. As a result, buying interest for imported cargoes receded. Meanwhile, Taiwan's CPC's No.3 naphtha cracker was shut down due to troubles, creating temporary spot demand. In the Southeast Asia market, amidst softening derivative polypropylene (PP) prices, buying interest for propylene was scant.

Butadiene prices on a CFR Northeast Asia basis softened. Due to the previous surge in butadiene prices, end-users found it difficult to pass on costs to downstream products. Furthermore, domestic butadiene supply in South Korea appeared to be recovering along with an increase in naphtha cracker operating rates. These factors are leading to receding buying interest. It was reported that Taiwan's CPC purchased cargoes for May delivery, following the shutdown of its No.3 naphtha cracker due to troubles.

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