Plunging Asian stock markets and continuous drop in crude futures led to Asian aromatic prices sliding since early Friday.
The styrenics chain was the worst hit, as benzene dived 3.3% and styrene monomer 3.36% from a day earlier.
Early Friday, the October bid-offer range for benzene was at $1,085-$1,100/mt FOB Korea, while the benzene marker was pegged at $1,100/mt. But despite the weak market sentiment, a November deal was heard done at $1,100/mt FOB Korea -- Vitol selling to Interchem.
Bids for September-loading SM cargoes, similarly tumbled $50/mt Friday morning from Thursday to $1,440/mt FOB Korea, though there were no offers.
Bids for October-loading cargoes also fell $45/mt from Thursday to $1,430/mt FOB Korea, while offers for the month came down by $35/mt to $1,455/mt.
Offers for prompt SM cargoes in China fell by around Yuan 100-150/mt ($15.63-$23.45/mt) to Yuan 11,350-11,400/mt, but no bids were seen. A trader based in China described market as "really soft" Friday.
Meanwhile, the FOB Korea toluene marker was pegged at $1,129/mt early Friday, down $22.50/mt or 2% from Thursday. An October cargo was offered at $1,120/mt, against a bid of $1,195/mt. On Thursday's Platts Market on Close assessment process, the best offer for an H1 October cargo was $1,141/mt. A November cargo was bid at $1,070/mt, against an offer of $1,090/mt.
Despite the fall, the toluene forward curve structure remained relatively steady Friday, with the October/November spread still pegged at $30/mt, unchanged from the day before.
The September/October spread, however, narrowed to $32/mt, from $33/mt Thursday, on signs that September cargoes had become less desirable.
The latest Petron sell tender for 10,000 mt of September toluene was not hotly bid on, fetching a price of $$1,150/mt CFR China, compared with an August cargo that was sold at $1,140/mt FOB Bataan, excluding freight of $20/mt for Limay-China.
In the isomer-grade mixed xylenes market, buyers were absent, despite offers heard for H2 September or H1 October cargoes since early Friday. A trader offered down an H2 September or H1 October CFR Taiwan cargo at $1,325/mt, $10/mt lower from its initial offer but could not attract any buying interest.
Both the isomer-MX FOB Korea and CFR Taiwan markers were pegged $7/mt lower from end of trade on Thursday, at $1,307.50/mt and $1,322.50/mt, respectively. "[The market] is uncertain due to the fall in crude, while the supply remains tight. No direction [at the moment]," said a Japanese trader.
Asian paraxylene was unchanged from Thursday, pegged at $1,649.50/mt CFR Taiwan/China Friday morning. Despite the volatility in crude and equity markets, PX participants were unfazed as fundamentals remained strong.
Due to several plant turnarounds in September and October in China, India, Kuwait and Thailand, PX supply is expected to be extremely tight. Meanwhile, a new 1.5 million mt/year downstream purified terephthalic acid plant is expected to come on stream in China during the period, which would further tighten the market.
"We're seeing supply uncertainty versus demand uncertainty [due to macroeconomic issues]," said a South Korean PTA maker. "But for now, supply uncertainty seems bigger."
On Friday morning, an offer for September-arrival PX was posted at $1,655/mt CFR Taiwan/China, but there were no bids.
Sources said market sentiment was weighed down by global macroeconomics, lower crude and US selloff. "Asia will be weak due to big fall in crude oil and US market," said a market participant.
