US President Donald Trump is in Japan for a four-day visit. During the trip, he is expected to discuss trade and geopolitical concerns with Japan Prime Minister Shinzo Abe.
In the refined products market, eyes are on the region's gasoline supply particularly after China released new export quotas to state-owned refiners renewed oversupply concerns. In the crude oil market, preliminary tanker data shows that loadings from Iran have fallen in May, but cargoes on the water wiere still headed to Asian destinations. This is after the US announced that it will no longer extend waivers to import Iran crude after the May 1 deadline.
In petrochemicals, the focus is on the narrowing spread beteen paraxylene and naphtha as new PX plants start up in China.
Iron ore prices remained supported above $100/dmt and market participants are watching whether Australian miners will increase shipment volumes to address rising end-user demand.
And in the aluminum market, third quarter negotioations for aluminum delivered to Japan will kick off this week. Japan is the region's largest importer of aluminum and the quarterly premiums it agrees to pay over LME spot prices set the benchmark for Asia.