Aromatics

　 Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis softened from the beginning of the week. This was mainly due to a decline in crude oil and naphtha prices, which are indicators of feedstock costs, as geopolitical risks surrounding the Middle East eased. Meanwhile, the spread between these feedstock prices and benzene and PX prices was widening. Supporting factors included continued exports of benzene to the US, and for PX, Purified Terephthalic Acid (PTA) derivative facilities in China completing their turnarounds and gradually resuming operations.

　 Ethylene prices on a CFR Northeast Asia basis extended their decline. With naphtha prices, a benchmark of feedstock costs, on a downtrend, end-users were taking a wait-and-see stance and refraining from buying, driven by existing weak demand and bearish sentiment. In terms of facilities, production of on-spec products was reportedly confirmed from Malaysia's Pengerang Refining and Petrochemical (PRefChem)'s naphtha cracker.

　 Propylene prices in Asia softened across the board, driven by slack supply/demand and lower crude oil prices. In the CFR Northeast Asia market, supply was perceived to be ample, while end-users' buying interest was scarce, which softened the undertone of the market. On an FOB Korea basis, a petrochemical maker was offering a cargo for July loading. In the Southeast Asia market, attention was focused on the restart of Malaysia's Pengerang Refining and Petrochemical (PRefChem)'s naphtha cracker and two residue fluid catalytic crackers (RFCC).

　 Butadiene prices in Asia significantly extended their losses. End-users in Northeast Asia had secured their requirements until July, and with naphtha prices trending soft recently, they anticipated that butadiene prices would continue to trend lower, resulting in receding buying interest. As end-users' buying ideas fell sharply, the spread between buying and selling ideas widened, and discussions were muted.

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