Aromatics

　 Benzene prices on an FOB Korea basis and paraxylene (PX) prices on a CFR Northeast Asia basis softened significantly in the middle of the week. This was mainly owing to a decline in crude oil prices. Following the significant defeat of the Republican Party in the US midterm elections, expectations rose that the war with Iran would move towards an end. In addition, as gasoline prices collapsed, the valuation of aromatic products for gasoline blending also eroded.

Olefins

　 Ethylene prices on a CFR Northeast Asia basis advanced. This was mainly owing to perceptions of tight supply/demand. In various Northeast Asian countries, restructuring, regular maintenance, and production adjustment have been continuously underway, and ethylene supply has been constrained. In addition, as prices for crude oil and methanol, which are feedstocks of olefins, have recently remained at high levels, operating rates of naphtha crackers and methanol-to-olefin (MTO) facilities in China decreased, and buying interest for imported cargoes was firm. Amidst this situation, a US cargo for January delivery was reportedly concluded at $1,185/mt.

　 Propylene prices on a CFR Northeast Asia basis saw an increase in the middle of the week, but then softened. Rising prices for propane and methanol recently, leading to lower operating rates of propylene production facilities in China, served as a bullish factor. On the other hand, the significant decline in benchmark feedstock crude oil prices in the latter half of the week pressured the market downward. Furthermore, demand for derivative polypropylene (PP) was weak. PP production was reduced, particularly in South Korea, and surplus propylene was sold in the spot market.

　 In the butadiene market on a CFR Northeast Asia basis, prices remained firm, bolstered by perceptions of tight supply. Available cargoes on the market appeared to be limited to a very few, such as cargoes produced by some Chinese manufacturers and those from outside Asia. However, as crude oil prices sharply declined in the latter half of the week, a wait-and-see mood spread.

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