US AROMATICS: Demand for toluene was expected to be largely confined to the blending segment this week amid expectations of continued soft demand. STDP margins appeared healthy on paper at near $84/mt, though market length was expected to keep run rates low.
Toluene pricing was poised to continue tracking both the RBOB and reformate markets. Dynamics were similar for the mixed xylene market as downstream paraxylene prices were poised to remain soft amid market length. Accordingly, demand from crystallization units was likely to remain soft.
US OLEFINS: Spot propylene prices are expected to remain stable to higher this week amid reduced refinery rates. Domestic propylene contract price negotiations have been delayed and will likely settle near the end of the month due to increased volatility and uncertainty in the market, sources said. Spot ethylene prices are expected to remain stable to lower amid oversupply and weak demand.