The outlook for most Asian petrochemicals is likely to be bearish due to an anticipated lull in trading due to the year-end. However, demand for gasoline blending may support some aromatics in the week to Dec. 24, says an article published in Platts.
Toluene
Asian toluene prices see mixed to mostly weaker sentiment as demand for toluene cargoes into China remained poor.
Toluene-naphtha spread steepened further in negative territory on strength in naphtha and dismal requirements for toluene for the two months out, sources said.
Toluene disproportionation, or TDP, units, however, will keep running, since benzene demand was firm, and prices were relatively attractive.
Isomer-MX
Gasoline blending demand remains a supportive factor for MX in East China, market sources said, and with the East China MX inventory at a more than two-year low at 22,300 mt in the week ending Dec 17, prompt supply is also tight.
Spread between MX and naphtha remains close to historically low levels and may pressure producers to limit MX production.
MTBE
The year-end lull is likely to keep trading in the Asian MTBE market muted in the week to Dec. 24. Fluctuations in energy markets due to the hovering uncertainties led by the omicron variant might add some downward pressure.
South Korean refiner Hyundai Oilbank is ramping up the run rate at its new 200,000 mt/year MTBE plant in Daesan to 80% of capacity, which might lengthen MTBE supplies.
Styrene monomer
Asian styrene monomer market is likely to be pressured by additional local supply and sluggish demand in the import market. Port congestions are being considered a main factor behind the weak importing needs.
Trade participants are eyeing the start-up process of Yantai Wanhua’s new 650,000 mt/year SM unit, which is expected this week.
Benzene
Fundamentals transiting to the first quarter seem mixed as demand slowed ahead of the Lunar New Year festive season.
Buyers were less keen to stock up supplies, and the upcoming 2022 Winter Olympics in Beijing was a plausible factor for demand to soften.
FOB Korea benzene physical stood at $914/mt on Dec. 17 and averaged $902.05/mt month-to-date.
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Source: Platts
