[Aromatics]

Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis both sharply declined. This was owing to a sharp fall in crude oil prices, which serve as an indicator for feedstock costs, compared to late April. Sluggish derivative and downstream demand in China for both benzene and PX also weighed on the market.

[Olefins]

Ethylene prices for CFR Northeast Asia and CFR Southeast Asia both remained soft. Due to declining profitability of derivatives, petrochemical makers, mainly in China, were reducing derivative production and simultaneously trying to sell surplus ethylene. Meanwhile, petrochemical makers in other Northeast Asian and Southeast Asian countries, which are export destinations, were also facing sluggish derivative demand, leading to a slack supply/demand balance. In addition, perceptions of naphtha scarcity, a feedstock, had receded compared to immediately after the outbreak of conflict between the US and Iran, which also contributed to weakening spot demand for ethylene.

Asia's propylene prices declined owing to sluggish demand.

In Asia's propylene market, demand for South Korea had disappeared, and market sentiments softened. Furthermore, derivative polypropylene prices remained soft, resulting in weak buying interest for propylene.

Asia's butadiene market saw muted trade activity. Although China and other countries returned from holidays, no significant movements were seen in discussions. Views were heard that domestic supply in South Korea was recovering, and buying interest for June-arrival cargoes was currently uncertain.

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