Paraxylene prices witnessed stable trend with modest increase in the USA market in the week ending on 6^th December 2024. The month of November showed mixed trends for Paraxylene prices. The market was volatile leading to mixed trends. The Paraxylene prices were highly dependent on global crude oil market and demand-supply dynamics.

According to the analysts at ChemAnalyst, the WTI crude oil prices witnessed a decline of 1.6% in the same week. The decline in the crude oil prices was attributed to the more than sufficient supply outlook into 2025 against OPEC+ delayed plans to open taps. The signs of subdued economic outlook and demand for crude oil forced producers to postpone the unwinding of supply cuts. While the demand for crude oil continued to witness a decline, the prices of feedstock Naphtha surged in the USA market. The surge in the feedstock prices put slight upward pressure on the prices of Paraxylene pushing the prices in upward direction and towards bullish outlook. The prices of Paraxylene increased by 0.2% reflecting the changing market dynamics. The market witnessed some uncertainty due to increased inflation rates. The Federal Reserve is expected to lower interest rates by another quarter point on December 18th at the end of its two-day meeting. This would mark the third rate cut in a row since September. In November 2024, the annual core consumer price inflation rate in the United States, which excludes food and energy costs, reached 3.3%, marking the highest level in three months.

In terms of demand, the fuel production sector witnessed growth in the market. Distillate fuel inventories increased in the market. Gasoline production increased, averaging 10.0 million barrels per day, while distillate fuel production decreased, averaging 5.2 million barrels per day. As winter season approached, the heating demand increased leading to increased consumption of Naphtha in the market and therefore increased prices of Naphtha and Paraxylene. While gasoline and distillate demand declined in the market, fuel for heating continued to increase. The demand for Paraxylene witnessed improvement in the market amid better market conditions. On supply side, refineries operated at 92.4% of their total capacity last week. Naphtha prices increased indicating increased production cost and upward pressure on the prices.

Looking further, the market dynamics for Paraxylene is highly dependent on international crude oil market and Naphtha market. The upcoming holiday season may push the demand for petrochemical products while production may decline leading to increased prices. The crude oil market will primarily be the driving factor for Paraxylene prices in the market. Therefore, fluctuations in crude oil market may have direct or indirect impact on the prices of Paraxylene.