Aromatics

　 Benzene prices on an FOB Korea basis and Paraxylene (PX) prices on a CFR Northeast Asia basis moved in a narrow range at high levels. Concerns over high crude oil costs and potential impacts on supply persisted amid stalled peace talks between the US and Iran, which kept prices unlikely to fall. Additionally, China's reintroduction of petroleum product export restrictions led to concerns over gasoline supply and higher gasoline prices, which served as a bullish factor for aromatics prices.

Olefins

　 Ethylene prices on a CFR Northeast Asia basis softened. A widening spread between ethylene and feedstock naphtha prices exacerbated the perception that ethylene was overpriced. As derivative margins remained low, some petrochemical makers were considering reducing derivative production and selling surplus ethylene. During the week, selling ideas for November delivery to China were heard at $1,160/mt, or at a premium of $50-60/mt to CFR Northeast Asia spot quotations.

　 The propylene market in Asia was muted due to a holiday mood. As China was on National Day holidays from Oct 1, there were no buyers and trade was inactive. In South Korea, Hyundai Oilbank's residue fluid catalytic cracker (RFCC) unit was shut down for emergency maintenance due to troubles, but it was expected to restart at the end of the week. Therefore, the impact on propylene supply was perceived to be minor. In the Southeast Asia market, there were reports of troubles at Malaysia's Pengerang Refining and Petrochemical (PRefChem)'s refinery.

　 In the butadiene market in Northeast Asia, trade was muted throughout the week, as China was on National Day holidays from the latter half of the week. Although discussions for November delivery were expected to take place after the holidays, the market outlook was uncertain.

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