The Asian petrochemical market’s performance last week was generally subject to their downstream segments. Whilst olefins ended stable to lower on weakness in the downstream derivatives markets, aromatics products were buoyed by positivity in purified terephthalic acid and styrene monomer.
Upstream, major feedstock naphtha’s CFR Japan price tumbled $24.25/mt to $582.75/mt last Friday, compared to the Thursday a week earlier.
AROMATICS
In the aromatics segment, South Korean Lotte Chemical’s Daesan aromatics plant shut operations after a fire broke out last Thursday morning, and it is expected to restart Tuesday.
The plant is able to produce 240,000 mt/year of benzene, 120,000 mt/year of toluene and 72,000 mt/year of solvent-MX. Its Yeosu BTX plant is able to produce 180,000 mt/year of benzene, 84,000 mt/year of toluene and 60,000 mt/year of solvent-MX.
Asian PX prices rose last week, riding on the overall optimism on the performance of the downstream PTA market.
Asian benzene prices also climbed up last week despite poor demand from China and Taiwan amid public holidays. This week, the recent uptick in downstream styrene monomer prices could continue to provide a silver lining for the benzene market.
The Asian styrene market is expected to remain on an upward trend this week, especially for prompt loading cargoes, with bullish sentiment fueled by a large fall in East China inventories and strong restocking demand emerging from downstream ABS makers in East China. East China SM stocks held by traders were estimated at 70,800 mt last Wednesday, down 12.38% week on week.
OLEFINS
Asian ethylene was pressured lower last week by a weak downstream polyethylene market, which pushed margins into negative territory. Downstream concerns will continue to weigh on prices this week, as several PE operators have cut operating rates, opting to sell their ethylene feedstock instead.
Asian propylene was stable last week in a quiet market ahead of the Chinese public holidays. This week, demand should see a slight pick up as buyers return to restock. Inventory in Shandong was also reported to be low, boosting demand.
Meanwhile, in butadiene, despite a slip in prices last week, spot prices for May are expected to be firmer as deepsea supplies dry up and regional turnarounds in China and India scheduled for mid-May further limit supply.
MTBE
Asian MTBE prices remained firm last week on the back of supply tightness and strong interest for prompt cargo. This week, despite peakish price levels, healthy 92 RON/95 RON spreads should continue providing support, leaving the market rangebound.
- Platts.com
