Busan, South Korea: Paraxylene (PX) prices show mixed sentiments in the global market. In South Korea, the price of Paraxylene has been decreased, further pushing export prices to decline. Meanwhile, the US market observed an increment in its price trend, owing to the soaring demand from the domestic market. On the other hand, Crude oil prices slumped this week because of recessionary fears, which would weigh on the demand for the Crude derivative commodity.

According to Market sources, South Korea's Paraxylene exports remain high, even after the truck drivers went on strike. Paraxylene is a liquid chemical which is transported by pipeline rather than trucks. Therefore, several sources based in South Korea said that the strike’s impact was heard as less significant for South Korea's paraxylene producers.

In the US, Paraxylene FOB Texas prices kept rising in the US market on the back of supply disruption and high demand. The values of the feedstock Naphtha have aided the pricing trend of Paraxylene in the week. Furthermore, high offtakes from the downstream PET and PTA manufacturers also contributed to the upward rally in Paraxylene Prices.

Meanwhile, China's domestic price roared, with healthy demand coming after some ease in Covid restrictions. On 18th June, a fire broke out at Sinopec Shanghai Petrochemical Co., Ltd., located in the city's Jinshan District; Due to the accident, the company shut down the whole plant, including the paraxylene unit. While the operating rate of the plant dropped from 2% to 82%, creating pressure on manufacturers amid healthy demand from the downstream sector.

ChemAnalyst Prediction states, "The altering atmosphere in demand-supply and Crude oil market trend may consist of the increasing value of Paraxylene in the global market. Furthermore, the manufacturers would try to keep their margins higher before the restart of the Sinopec Petrochemical unit in China. The US market is expected to flourish as demand from PTA and PET is expected to mount.