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. This mainly reflected changes in benchmark feedstock crude oil prices, which serve as benchmarks for feedstock costs. In addition, amid increasing tensions in the Middle East, concerns over supply disruptions were also perceived. However, as benzene and PX prices remained at high levels, views emerged that derivative producers were unable to pass on increased costs to downstream buyers, leading to a slowdown in demand.

Olefins

　 Ethylene prices on a CFR Northeast Asia basis inched up. Although profitability for all derivative products worsened, supply was perceived to be tight as Asian ethylene producers maintained reduced operation rates, and multiple facilities were shut down for regular maintenance, troubles, or production adjustments. Regarding facility operations, Malaysia's Pengerang Refining and Petrochemical (PRefChem) shut down operations at its naphtha cracker on Oct 17 due to a power outage. It was reported that the shutdown period might be about one week.

　 Propylene prices on a CFR Northeast Asia basis softened. This reflected softening domestic prices in China. As exports of derivative polypropylene (PP) from China slowed down, propylene demand was also perceived to be weakening. However, crude oil prices remained at high levels, and cost-push pressure remained strong. Furthermore, amid continued supply concerns for feedstocks for propylene, such as crude oil, naphtha, propane, and methanol, views persisted that prices were supported.

　 Butadiene prices in Asia strengthened due to perceptions of tight supply. Malaysia's Pengerang Refining and Petrochemical (PRefChem) shut down operations at its naphtha cracker on Oct 17 due to a power outage. Consequently, the shipment of a cargo sold by the company for early November loading was expected to be delayed. In the Northeast Asia market, the destination for this cargo, supply tightness intensified as well. One end-user in Taiwan reportedly purchased a cargo for November delivery.

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