The first week of April experienced diverse trajectories for m-Xylene prices in India and Japan on the back of regional supply-demand dynamics and changes in market sentiment. While there was a slight rise in India, Japan experienced a small decline in m-Xylene prices to show differing trends across the two major Asian markets.

 In India, prices for m-Xylene saw a slight increase after an extended period of stability. The price elevation occurred despite a small decrease in feedstock naphtha price, which typically lower costs pressure on m-Xylene prices. However, price trend was influenced more significantly by tight regional supply and an increase in export opportunities, which counterbalanced the feeble domestic demand.

Manufacturing in India trended steadily during the week, with no major operational or production disruptions reported. Production levels remained steady, and inventory levels remained slightly disturbed. Meanwhile, there was a limited spot market availability, which provided a sense of tighter market supply. These gradual changes were enough to generate support for higher prices against weak downstream demand.

The PET sector, which is a major consumer of m-Xylene, appeared to be consuming less material due to cautious purchasing and weak end-use activity. However, traders did not see strong demand from PET sector but new interest in exports and tight supply in the region were sufficient for the price increase. Although, market participants expect some support on price, becoming more robust if seasonal demand recovers or export orders become stronger in the short term. Demand uncertainty remains modest in the near term.

On the other hand, the Japanese market had some further decreases in m-Xylene prices on the week, as feedstock naphtha prices increased slightly, indicating that weak downstream demand was the dominant factor influencing m-Xylene prices.

Supply conditions in Japan remained stable as producers were running normal operating rates with sufficient inventories. However, demand from the PET sector remained under pressure, weighed down by weak end-user consumption and limited end-user demand. This has led to slight oversupply and bearish market sentiment driving prices downward.

Looking Forward, ChemAnalyst expects that m-Xylene prices in India and Japan are expected to observe an upward trend in upcoming weeks of April. In India, tighter regional availability and strengthening export opportunities should support change in m-Xylene prices even with continued weak domestic demand. As we move further into summer, downstream activity may gradually come back. Japan should see some recovery in m-Xylene prices with anticipated demand improvement seasonally in packing and textiles as well as opportunities for export, also any sustained upward trend in naphtha prices could also put upward pressure on m-Xylene prices through higher production costs.