Nitro-o-Xylene Supply in October Assessed to be Ample, Prices to Remain Subdued in Asia
Nitro-o-Xylene Supply in October Assessed to be Ample, Prices to Remain Subdued in Asia

Nitro-o-Xylene Supply in October Assessed to be Ample, Prices to Remain Subdued in Asia

  • 25-Oct-2024 9:00 PM
  • Journalist: Motoki Sasaki

In October 2024, the supply of Nitro-o-Xylene in Northeast Asia remained high, driven by production capacities in China and India that came online to meet seasonal demand during the autumn period. This increased supply coincided with elevated global shipping costs, particularly for shipments originating from South Asian countries, as geopolitical tensions in the Western Indian Ocean continued to influence trade routes. Consequently, Nitro-o-Xylene prices were relatively weak through much of the early quarter. However, in September, logistical pressures began to ease slightly, and prices showed marginal recovery, supported by the redirection of more vessels toward Asia due to the severe hurricane season along the U.S. East Coast. This shift in logistics, alongside a slight weakening in spot o-xylene prices and moderate demand in Northeast Asia, helped maintain a subdued pricing trend for Nitro-o-Xylene.

Shifting trade flows were notable in Northeast Asia, as import volumes of Nitro-o-Xylene declined while export volumes of Nitro-o-Xylene and its derivatives increased. This narrowing gap between imports and exports highlights growing self-sufficiency in the region. In China, supply of Nitro-o-Xylene improved with increased domestic output, even as feedstock cost pressures continued. Expanded production availability locally helped drive down prices in Northeast Asia, showing a significant reduction from last year.

Consumer segments for Nitro-o-Xylene in Northeast Asia—including dyes and pigments, agrochemicals, and pharmaceuticals—displayed varied demand trends in Q3. Pharmaceutical demand rose seasonally, offsetting weaker demand in the dye and agrochemical sectors. Agrochemicals showed some growth, supported by favorable weather and expanded acreage, while demand for dyes softened due to economic slowdowns in both domestic and export markets. In South Asia, especially in India, monsoon-related logistical challenges affected supply and pricing, though demand for Nitro-o-Xylene in the Indian market rose primarily due to agrochemical applications. However, demand for dyes in India remained subdued as the broader economic environment pressured apparel sales. According to the Clothing Manufacturers Association of India (CMAI), slower apparel growth is likely to limit dye demand, a trend expected to persist in the coming months.

Overall, market sentiment for Nitro-o-Xylene in Northeast and South Asia has been influenced by oversupply and mixed demand signals. As more production capacities are added, prices may remain under pressure as producers focus on maintaining competitive positioning by increasing output volumes. Future projections suggest prices could stay low as the market works to absorb the surplus capacity. Financial results from key producers for Q3 are still pending, but current data points to a trend of volume-driven strategies to counterbalance lower prices. This strategy aims to capture market share in an environment that remains highly competitive and marked by logistical challenges and varied demand across consumer sectors.

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Nitro o Xylene Supply in October Assessed to be Ample Prices to Remain Subdued
  • 25-Oct-2024 9:00 PM
  • Journalist: Motoki Sasaki