Aromatics

　 Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis both saw significant declines in their levels since the beginning of the week. This reflected a sharp decline in crude oil prices, which serve as an indicator for feedstock costs, following easing Middle East geopolitical tensions. Meanwhile, the price spread between PX and naphtha was maintained at a certain level. Supply/demand for PX was still perceived to be tight.

Olefins

　 Ethylene prices on a CFR Northeast Asia basis saw a slight decline. Demand for derivatives remained sluggish, and naphtha prices, an indicator for feedstock costs, trended downward. Since the ethylene market was seen to be bearish, end-users were refraining from new purchases. On the supply side, Malaysia's Pengerang Refining and Petrochemical (PRefChem) restarted its naphtha cracker operations.

　 Propylene prices on a CFR Northeast Asia basis declined sharply. Seeing significant downside potential in the market, petrochemical makers in South Korea and Taiwan successively conducted spot sales. Meanwhile, among propylene production facilities, propane dehydrogenation (PDH) units saw a decrease in feedstock costs. This was also pointed out as a bearish factor for propylene prices.

　 Butadiene prices on a CFR Northeast Asia basis continued to trend soft. With reports that South Korean derivative makers were reducing their operating rates, demand for butadiene remained sluggish. Due to a wide gap between sellers' and buyers' ideas, active trade was not observed.

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