Aromatics

　 Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis advanced sharply in the first half of the week, driven by a rise in benchmark feedstock crude oil prices. However, in the latter half of the week, the gains were pared as the rise in crude oil prices paused and naphtha prices softened.

Gasoline component

　 MTBE prices on an FOB China basis strengthened from the previous week, bolstered by a rise in crude oil prices. However, profitability continued to be poor, and operating rates at MTBE facilities in China remained low. Meanwhile, operating rates at Russian refineries fell due to drone attacks by Ukraine, some market sources pointed out the possibility that China might step up imports of gasoline and MTBE, a gasoline blending component, going forward.

Olefins

　 Ethylene prices on a CFR Northeast Asia and CFR Southeast Asia basis increased from the previous week, following a further rise in benchmark feedstock crude oil and naphtha prices. Since crude oil and naphtha prices had been on a downward trend until tensions between the US and Iran escalated again, many ethylene end-users had taken a wait-and-see stance, anticipating lower ethylene prices. Therefore, end-users' inventories were not perceived to be high, and demand for August arrival cargoes appeared to remain. Meanwhile, traders with cargoes for sale were limited, and views were heard that supply/demand was tight.

　 The Asia propylene market gained across the board, bolstered by high crude oil prices. In the CFR Northeast Asia market, with crude oil prices surging, China domestic prices rose, and buying interest strengthened. On an FOB basis, Taiwan's Formosa Petrochemical and CPC issued sell tenders for August loading. On an FOB Korea basis, Hanwha TotalEnergies issued a sell tender for August loading.

　 Butadiene prices on a CFR Northeast Asia basis surged, following a rise in benchmark feedstock costs including crude oil due to the deteriorating Middle East situation. In mid-week, information surfaced that a Chinese end-user purchased a Malaysian cargo of butadiene. In China, there appeared to be consistent demand for butadiene, as export sales of derivative synthetic rubber were strong.

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