Aromatics

Benzene prices on an FOB Korea basis and paraxylene (PX) prices for CFR Northeast Asia arrival both sharply increased. This was reflecting a rise in crude oil prices amid deterioration of the Middle East situation, and growing concerns over the supply of petrochemical feedstocks and products from the Middle East.

Olefins

Ethylene prices on a CFR Northeast Asia basis moved up further. This was reflecting a rise in crude oil and naphtha prices, which are benchmark feedstocks. On the supply side, several ethylene facilities, including those in South Korea and Japan, were shut down due to higher costs, troubles, or maintenance. On the demand side, as the inflow of Middle Eastern cargoes was restricted, ethylene glycol (EG) market prices were strengthening, boosting production interest.

The Asia propylene market rose reflecting higher feedstock costs. In the CFR Northeast Asia market, both buyers and sellers wanted to discuss at prices linked to market quotations amid soaring crude oil and other feedstock prices. In the FOB basis market, Taiwan's Formosa Petrochemical (FPCC) sold 20,000mt for October loading on a spot basis. In South Korea, two petrochemical makers also sold several cargoes for October loading. The concluded prices were reportedly those linked to market quotations.

In the Northeast Asian butadiene market, market sentiments were strengthening along with soaring crude oil prices, and Chinese domestic prices also rose significantly. However, in export/import discussions, offers were limited and demand was sluggish, and no deals were concluded for Asian cargoes. In trading for non-Asian cargoes, European cargoes for end-October loading were reportedly concluded. The entire volume was said to be destined for China.

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