Aromatics

　 Benzene prices on an FOB Korea basis fell sharply in the first half of the week, mainly due to a decrease in crude oil prices. However, crude oil prices rebounded after that, and the benzene market was affected by crude prices again. Paraxylene (PX) prices were at higher levels than those at the end of the previous week. Firm gasoline prices were a supporting factor.

Olefins

　 In the ethylene market on a CFR Northeast Asia basis, spot trade was muted. It was time for discussions for Asian cargoes to be delivered in December. But it was difficult for both buyers and sellers to start discussions since supply via term contracts for 2027 was uncertain. It was also difficult for US cargoes to be sold in Asia owing to a rise in US ethylene prices and higher freight costs.

　 Propylene prices in Asia increased. In the Northeast Asia market, buying interest from China was robust as China domestic prices were firm. Along with this, market sentiments strengthened. On an FOB Korea basis, about 20 cargoes loading November were sold for export. In the Southeast Asia market, players focused on the restart of Pengerang Refining and Petrochemical (PRefChem)'s naphtha cracker in Malaysia.

　 Butadiene prices in Asia extended gains. There were few available cargoes and supply was perceived to be tight. For delivery to South Korea, a European cargo for December delivery was reportedly concluded at $1,900/mt. For term contracts for 2027, negotiations were hardly showing progress as it was difficult to foresee the supply/demand balance due to restructuring of petrochemical facilities and the startup of new facilities in South Korea and other factors.

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