Asian petrochemicals markets mixed

Recently, ICIS released a report on petrochemical products in Asia. Asia's petrochemical markets were mixed due to economic headwinds and high inflation, the report showed.

According to ICIS, for the acrylonitrile-butadiene-styrene polymer (ABS) market, due to weak downstream demand, market support is limited, and the prices of raw material benzene and styrene monomer have also softened. In addition, the fourth quarter is a typical seasonal low season for demand, and the soaring energy costs during the Russia-Ukraine conflict exacerbated the downturn in end-user consumption.

In the liquid caustic soda spot market, oversupply continues to exist, with Asian producers focusing on exports amid sluggish demand. The depreciation of major currencies against the dollar has also spurred Asian producers to export more. Arbitrage demand from Europe remains subdued, and Asian sellers have no choice but to lower prices to encourage buying activity.

In the adipic acid market, due to fluctuations in the price of raw material benzene in the market, the export price in Asia continued to fall. For goods from other markets, price pressure from rising costs is easing due to lack of spot demand.

In contrast, the Asian paraxylene (PX) market was supported by reduced supply due to lower plant operating rates and planned plant closures. The relatively firm price of its feedstock isomer-grade mixed xylenes has led PX producers in the Asian region to prefer to sell their feedstock instead of producing PX at uneconomical production margins. Refiners are also trying to increase peak middle distillate production for better margins, limiting aromatics production unit operating rates. Reduced PX production and no closure plans for downstream purified terephthalic acid (PTA) facilities led to a rapid tightening of PX supply in Asia. Only after the new PX facilities start to come on stream from the end of this year to the beginning of the first quarter of 2023 will the supply-tight PX market gradually ease.