Aromatics

　 Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis strengthened throughout the week, owing to a rise in benchmark feedstock crude oil and naphtha prices. Meanwhile, a decline in profitability of derivatives was a factor suppressing demand for benzene and PX. Against this backdrop, the price spread between benzene and PX against crude oil and naphtha remained narrow.

Olefins

　 Ethylene prices on a CFR Northeast Asia basis and CFR Southeast Asia basis advanced further, reflecting higher benchmark feedstock naphtha prices. There were few available cargoes and offers were not heard. Meanwhile, buying interest was also limited, and no end-users were eager to raise their bids to conclude deals. Amidst this, the prices spread between ethylene and naphtha narrowed. Moving forward, views were heard that petrochemical makers might reduce naphtha cracker operating rates.

　 The Asian propylene market was firm amidst soaring crude oil and naphtha prices. In the CFR Northeast Asia market, although no new deals were heard, both buying and selling ideas were pushed up against a backdrop of higher feedstock costs. Additionally, firm domestic prices in China also served as a bullish factor. On an FOB Korea basis, one petrochemical maker sold a second-half August loading cargo via tender in the first half of the week. In the Southeast Asia market, both residue fluid catalytic cracker (RFCC) units owned by Malaysia's Pengerang Refining and Petrochemical (PRefChem) were shut down. This eliminated the sense of ample supply.

　 Butadiene prices on a CFR Northeast Asia basis strengthened reflecting higher feedstock costs. However, some market sources pointed out that while sellers significantly raised their ideas, end-users' buying ideas had not risen as much. In Southeast Asia, views were heard that butadiene supply might decrease going forward due to a decline in operating rates of some facilities.

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