In December, Mixed Xylene prices in the U.S. experienced a notable decline, largely driven by weak demand and a slowdown in industrial activities across the country. Despite a 5.6% price increase in November, the Mixed Xylene market faced downward pressure as consumer confidence worsened. Additionally, several factors contributed to the price drop, including a dip in crude oil prices, weaker domestic manufacturing output, and the impact of the holiday season on overall industrial demand.

The decline in Mixed Xylene prices can be attributed to the cooling of support from the crude oil sector, which had helped sustain production levels during previous months. As oil remains an important feedstock for the petrochemical industry, the reduction in crude prices has resulted in frail cost support for Mixed Xylene production. Furthermore, the strengthening of the U.S. dollar in December negatively affected export dynamics, particularly with Asian countries, further impacting the pricing trajectory.

The demand outlook for Mixed Xylene remained subdued in December, continuing the sluggish consumption trend observed in November. Weak demand from key importing countries, along with a slowdown in U.S. manufacturing activity, continued to dampen market performance. The U.S. manufacturing sector showed signs of distress, indicating a contracting industrial environment, which in turn reduced the demand for chemicals like Mixed Xylene. Additionally, both the construction and automotive industries, which are significant consumers of Mixed Xylene, reported lower orders, further contributing to the overall decline in demand for industrial chemicals.

The ongoing global economic slowdown added to the uncertainty, with geopolitical risks and potential policy shifts, such as the U.S. elections, further dampening market confidence. As a result, industry participants are bracing for continued weak demand and anticipate further price declines in the coming months. The situation is exacerbated by the holiday season, during which many industrial activities slow down, leading to lower demand for chemicals including Mixed Xylene. Manufacturing plants tend to operate at reduced capacity during this period, contributing to a cooler Mixed Xylene market.

In addition, the U.S. Chemical Production Regional Index (U.S. CPRI) recorded a 1.5% drop in December, following declines in previous months. The American Chemistry Council reported that chemical output was lower across all regions, with the Gulf Coast region, home to much of the nation's industrial chemical and synthetic materials capacity, seeing the largest declines. This slowdown in chemical production reflects broader economic challenges that are expected to persist into the new year.

Given these factors, the U.S. Mixed Xylene market faces a period of stagnation, with limited upward momentum and a continued focus on managing weak demand and economic uncertainty. As the year concludes, the outlook for the first quarter of 2024 remains cautious, with market participants expecting minimal price growth in the immediate future.