ASIA PETROCHEMICALS: Key market indicators for Oct 5-9

Asian petrochemical markets are expected to see subdued trading over Oct. 5-9 as China's Golden Week holidays keep liquidity thin and delay clearer demand signals. Supply tightness from regional maintenance continues to support aromatics, including paraxylene, benzene and toluene, while olefins face some pressure from weak downstream demand.

Market participants will likely closely monitor crude oil movements, inventories, operating rates and post-holiday Chinese buying activity for direction.

Paraxylene

** Asian PX prices are expected to remain strong as supplies will remain tight, amid some lost production from planned turnarounds in the region.

** Demand-side signals will likely become clearer after the Golden Week holidays, as downstream procurement activities pick up along the polyester value chain.

** Platts, part of S&P Global Energy, assessed Asian PX prices rose $3/metric ton week over week to $1,262.67/mt CFR Taiwan/China Oct. 2.

Benzene

** Asian benzene prices may remain supported amid a tight supply backdrop, with various South Korean producers undergoing planned maintenance.

** Port inventories of benzene in east China stood at 80,000 mt as of Sept. 30, up 42,000 mt, or 111%, week over week, according to estimates from a China-based broker.

** Asian benzene prices rose marginally by $1.66/mt week over week to $1,178.33/mt FOB Korea Oct. 2.

Toluene

** Toluene prices are expected to remain firm amid tighter inventories and lower production heard in Northeast Asia as market participants told Platts there was "no incentive for producers to produce BTX."

** Toluene port inventories in East China surged 105.41% week over week to 7,600 mt Oct. 2, according to data compiled by Platts, from market sources. However, South China port toluene stocks fell 8.57% week over week to 6,400 mt. The Platts Toluene FOB Korea Marker averaged $1,155.45/mt in September, its highest monthly average since at least the start of 2025, underscoring limited toluene availability and the oil price rally in lifting values.

** Platts assessed toluene FOB Korea up $23/mt week over week at $1,209/mt on September 25, while toluene FOB China was assessed up $23/mt at $1,203.00/mt over the same period.

Styrene monomer

** Asian styrene monomer prices are expected to remain rangebound on thinner trade, as regional market participants are away for public holidays.

** Port inventories of styrene monomer in east China were at 32,400 mt as of Oct. 2, down 12,700 mt week over week, according to data from a China-based analyst.

** Asian SM prices gained $38/mt week over week to $1,369/mt CFR China Oct. 2.

Isomer-MX

** Isomer-grade mixed xylene prices are expected to track gasoline blending demand cues over Oct. 5-9 amid the narrower downstream paraxylene-mixed xylenes spread.

** The spread between isomer-MX and the Naphtha C+F Japan marker closed at $252.38/mt Oct. 2, the highest level since June 12, 2024.

** Platts assessed Asian isomer mixed xylene at $1,162/mt FOB Korea Oct. 2, down $1.50/mt week over week, while the CFR Taiwan and CFR China markers closed at $1,197/mt and $1,179/mt, respectively.

Methanol

** Asian methanol prices are expected to trade sideways, with China closed for the Golden Week holidays until Oct. 8, and many market participants attending a major chemicals conference in Europe.

** Market participants are expected to look to movements in crude oil prices later in the week for direction, particularly as Chinese participants return to the market following the break.

** Platts assessed CFR China methanol $35/mt higher week over week at $518/mt Oct. 2; CFR Southeast Asia rose $27/mt over the same period to $650/mt.

Ethylene

** Asian ethylene prices are expected to continue easing amid a shortage of firm demand as China remains shut through the week.

** Lackluster trade discussions also persisted in Southeast Asia, with talks of more supplies being available for the prompt and spot, Southeast Asia-based trading sources said.

** Platts assessed ethylene CFR Northeast Asia $40/mt lower week over week at $1,150/mt Oct. 2, while the weekly FOB Korea ethylene price was down $40/mt at $1,140/mt. Platts CFR Southeast Asia ethylene was $40/mt weaker week over week at $1,100/mt.

Propylene

** Asian propylene prices will likely remain stable amid thin trading as Chinese participants are away for the Golden Week holidays.

** Downstream demand for PP and acrylonitrile remains sluggish. However, Chinese PDH operating rates are expected to decline in the near term due to tight feedstock, which could provide support for prices, said sources.

** Platts assessed propylene FOB Korea stable day over day at $1,185/mt and CFR China stable day over day at $1,225/mt Oct. 2.

Butadiene

** Asian butadiene is likely to see less trading activity this week, at least until the Chinese market returns Oct. 8. Market participants are likely to monitor China's market direction and activity afterward to gauge the outlook going forward.

** Platts assessed Asian butadiene stable week over week at $1,600/mt CFR China Oct. 2.

Polypropylene

** Asian polypropylene prices are expected to remain stable due to the Chinese National Day holidays.

** In China, Platts assessed domestic Chinese raffia up 50 yuan/mt week over week at 10,000 yuan/mt ex-works China week over week Oct. 2.

** Southeast Asian buyers remain cautious about purchase prices to manage costs, but some Indonesian buyers may return to the market after key local producers release their fourth-quarter contract prices.

PVC

** Asian PVC prices were stable to stronger last week. Platts assessed FOB China ethylene-based PVC at $750/mt and carbide-based PVC at $725/mt Oct. 2, both up $10/mt week over week.

** Trading activity is expected to remain muted during China's Golden Week holidays, with market participants monitoring sentiment and demand indicators upon the market's return.

** Platts assessed CFR China PVC at $855/mt Oct. 5, while CFR Southeast Asia was at $825/mt, both unchanged week over week.