Declined prices of Paraxylene in the USA market: August 2024

The Paraxylene prices in the US market witnessed a steep decline in the second last week of August 2024. The month of August observed bearish market sentiment as the prices of Paraxylene showed gradual decline since the start of the month. The decline in the prices could be attributed to various factors including feedstock cost affecting the production costs, global demand and supply dynamics, domestic demand from downstream sectors and so on.

According to analysts at ChemAnalyst, the prices showed a significant decline of 3.5% as compared to the previous week prices. The decline in the prices of Paraxylene was supported by declined feedstock prices. Naphtha prices also declined in the second last week of August and Paraxylene prices followed the same trend. Naphtha prices are often directly corelated to the international crude oil price trends. The decline in the prices of crude oil in the international market supported the bearish market trend for the prices of Naphtha as well as Paraxylene as the prices plummeted in the market. Crude oil prices observed a downward trend despite declined inventories in the US market. The bearish market scenario was primarily due to declined demand of Paraxylene from the petrochemical sector. The prices of downstream products such as Polyethylene Terephthalate (PET) and Purified Terephthalic Acid (PTA) used in the petrochemical production remained stable in the market reflecting the steady and stagnant market for petrochemicals in the US market.

These factors affected the overall demand for Paraxylene in the market which ultimately affected the prices of Paraxylene. Recent economic conditions, including fluctuations in consumer spending and industry activity have influenced the Paraxylene demand in the market. While overall demand remained steady the recent price decline suggested declined demand growth from downstream industries. Lack of upward pressure from feedstock costs also supported the overall bearish market conditions. Global Paraxylene prices have also showing due to a combination of various factors such as declined crude oil prices and increased production capacity. This downward trend is reflected in the US market, leading to declined prices. Changes in the overall economic landscape in the country affected the manufacturing activities leading to reduced industrial activity and slower consumer spending growth. The decrease in Paraxylene prices provided cost relief to the producers of polyester fibres and resins.

Looking further, the month of August was characterized by decline in prices driven by low crude oil and feedstock prices and adjustments in global supply conditions.