Paraxylene Prices Showcased Stability Following a Bearish Market Trend

The prices of Paraxylene remained notable stable in the week ending on 1^st November 2024. According to the analysts at ChemAnalyst, the prices stabilized at USD 884/MT FOB Texas USA. The prices remained unchanged as compared to the previous week. The stability in the prices was influenced by various factors such as raw material cost, production cost, geopolitical concerns and so on. The prices showed bearish market trend in the previous weeks due to interplay of various reasons.

In the USA market, due to the upcoming presidential elections, the market continued to show fluctuations. The crude oil market plummeted as the prices declined by 1.7% to USD 68.76 bpd. The oil rigs count in the country remained unchanged in the previous week indicating stable output and supply in the market. The number of oil rigs can be considered as an indicator of short-term production in the country which remained stable in the country. While the production cuts by OPEC+ countries and other factors pushed the prices of oil in the downward direction, Paraxylene prices were not impacted significantly. Paraxylene prices showed the same market trend as the feedstock Naphtha. On the supply side, Naphtha prices remained stable in the USA market which led to the overall stable market conditions for Paraxylene in the market. Stable feedstock cost reflected the stable production cost in the market leading to stable prices of Paraxylene in the market.

On the demand side, the demand of Paraxylene remained stable and steady from PTA and PET production industries. The prices of PTA remained stable in the market due to sluggish market sentiment due to stagnant trading activity and weak buying interest from the market participants and a cautious stance by the consumers. The operating rates also remained low for PTA, but supply was plentiful due to availability of inventories in the market. As the production of PTA remained weak, demand for feedstock Paraxylene remained stable as the previous week leading to stable supply and demand dynamics and therefore stable market trend.

Looking further, the prices of Paraxylene is expected to show fluctuations considering the upcoming changes in the market due to the expected presidential elections in the country. Changes in the economic conditions as well as supply and demand dynamics may impact the prices of Paraxylene in the USA market. The changes in the crude oil prices also impact the overall market. The expected production cuts by OPEC+ may impact the crude oil prices in the market and in turn impact the Paraxylene prices.