For the Quarter Ending September 2024
North America
In Q3 2024, the North American mixed xylene market experienced a bearish trend, driven by muted demand and declining prices. Throughout August and September, mixed xylene prices remained stable to lower, primarily due to weak consumption from the downstream phthalic anhydride industry, particularly within the construction sector. Economic headwinds, including rising mortgage rates and sluggish construction spending, exacerbated the already soft demand, leading to average market conditions. This downward pressure was compounded by falling feedstock naphtha prices, which further reduced production costs for mixed xylene.
Supply levels were characterized as moderate, with domestic production operating at low rates amid deteriorating manufacturing conditions. Despite these challenges, the availability of mixed xylene was sufficient to meet existing demand. However, potential supply disruptions loomed due to labor negotiations between the International Longshoremen's Association and port operators, with strike threats potentially impacting supply chains. The last recording price of September 2024 was assessed for FOB Louisiana USD 840/MT
Overall, while there were indications of stabilizing factors, including a decrease in inflation rates, these did not translate into increased demand for mixed xylene. The market sentiment remained cautious, reflecting the complexities of a landscape shaped by external economic challenges and sluggish growth within key end-user sectors.
APAC
From July to September 2024, mixed xylene prices in APAC remained generally stable to lower, as market dynamics were influenced by soft buyer interest, abundant supply, and limited feedstock cost support due to declines in naphtha prices. Crude oil showed volatility due to geopolitical tensions, further affecting market sentiment. Meanwhile, demand from the downstream phthalic anhydride industry was sluggish, hindered by slower-than-expected construction activity amid China's property sector downturn. Throughout Q3, China’s economy faced challenges, including a weaker GDP growth rate and a three-month decline in manufacturing activity, despite government efforts to stimulate growth with policy rate cuts. Sufficient mixed xylene supply was met with declining downstream demand, while production rates were lowered to align with demand levels. Import delays due to port congestion, typhoons, and supply chain disruptions added some pressure, yet inventory levels remained adequate. The last recording price of September 2024 was assessed for Ex-Qingdao USD 665/MT. The real estate sector’s downturn continued to weigh on demand for mixed xylene’s downstream applications, with new-home sales among top developers decreasing sharply year-over-year. This combination of high material availability and weak demand kept Mixed xylene prices low, and market sentiment is expected to remain subdued in the near term.
Europe
In Q3 2024, the European mixed xylene market has been experiencing significant challenges in 2024, marked by stable to declining prices driven by muted demand. The German market has been particularly affected, with prices under pressure due to weakened consumption from downstream sectors, especially construction and plastics. Despite a decrease in feedstock naphtha prices, which has lowered production costs, the overall market sentiment remains bearish as traders navigate a landscape characterized by sluggish activity and cautious purchasing behavior. Supply dynamics have also played a role, with adequate availability of mixed xylene resulting from prior inventory restocking. However, production rates have been curtailed in response to the lack of downstream momentum. Import challenges from Asia, exacerbated by high freight costs and port congestion, have further constrained the supply chain, creating a delicate balance between available material and muted demand. The last recording price of September 2024 was assessed for FOB Hamburg USD 840/MT. The broader economic context in Europe, particularly Germany, has contributed to these market challenges. With the economy contracting unexpectedly and inflation rising, consumer and business sentiments have weakened. As key industries continue to face downturns, the outlook for the mixed xylene market remains uncertain, with expectations of further price declines as demand stays low amid a struggling economy.
For the Quarter Ending June 2024
North America
Mixed Xylene prices have inched lower across the US market during the second quarter of 2024 supported by weak derivative demand. The fragile buying sentiment surrounding the market was further dampened by sharp volatility in crude oil futures, coupled with a monthly loss in feedstock prices. Additionally, the sufficient supply kept surpassing downstream demand despite notably lower production rates amid the ongoing market uncertainty.
The raw material Naphtha prices have persistently decreased followed by soft crude oil prices which resulted in the low production cost of Mixed Xylene, contributing to a downward shift in the price realization of Mixed Xylene in the domestic market. Furthermore, demand for Mixed Xylene from the downstream p-xylene, and m-xylene industry has been inactive in the domestic market defying seasonal patterns while converters continued to report insufficient order entries.
The spot market transactions were also muted as the eagerness of terminal firms to enter the market was not strong. As a result, manufacturers of Mixed Xylene have reduced prices in order to boost sales. On the other hand, a major producer of Mixed Xylene ExxonMobil has reported net income of $8.22bn for Q1 2024, down 28% from $11.43bn recorded in the corresponding quarter of 2023. In the meantime, procurement from the overseas market has also been limited amid external headwinds which further promoted the manufacturers to lower their export prices. Therefore, prices of Mixed Xylene FOB Texas were settled at USD 995/MT with a month-on-month decrement of 8.8% during June 2024.
Asia- Pacific
Mixed Xylene prices have showcased a fluctuation in the Asian market during the second quarter of 2024. During the initial Q2 of 2024, Mixed Xylene prices have inched higher in the South Korean market. However, feedstock Naphtha prices have persistently decreased which resulted in the low production cost of Mixed Xylene in the domestic market. In addition, demand for Mixed Xylene from the downstream p-xylene industry has increased due to a rise in consumption from the end-user sector, leading to an upward shift in the price realization of Mixed Xylene. Though domestic demand from the o-xylene, m-xylene was relatively stable during the week. In addition, inquiries from the overseas market have also been observed on the higher side in an effort to replenish the material. As per the market source, South Korea's May export to China increased by 7.6% year on year to $ 11.4 billion, the highest in 19 months, while shipments to the US increased at a faster rate of 15.6% to $10.9 billion. Furthermore, due to low operating rates in the last few weeks, material availability was limited to meet the downstream demand. However, after experiencing a bullish rally, Mixed Xylene prices have inched lower towards the end of Q2 of 2024. The cost support from feedstock Naphtha was limited on Mixed Xylene as its prices settled on the lower end, supporting the prices to follow a downward shift in the price realization of Mixed Xylene in the domestic market. In addition, the domestic demand for Mixed Xylene from the downstream p-xylene, o-xylene, and m-xylene industries was average which weighed down the prices of Mixed Xylene in the domestic market. Meanwhile, the Mixed Xylene supply balance remained tight due to low steam cracker operating rates. Nonetheless, it was insufficient to drive the price realization of Mixed Xylene to the higher end in the domestic market. As a ripple effect, prices of Mixed Xylene FOB Busan were settled at USD 904/MT with a monthly decrement of 1.3% during June 2024.
Europe
Mixed Xylene prices have witnessed mixed sentiments across the European market during the second quarter of 2024. During the initial Q2 of 2024, Mixed Xylene prices have inched higher in the German market. Tightening supply conditions were the main driver behind the price rise, even though demand from the downstream Xylene derivative notably p-xylene, o-xylene, and m-xylene industry has remained under pressure from economic challenges. Moreover, the price rise was further supported by curtailed output rates and a few outages in the domestic market, leading the limited material availability in the domestic market. After staying on an uptrend at the beginning of Q2 of 2024, Mixed Xylene prices have turned soft towards the end of Q2 of 2024 amid an instant response to bearish crude oil prices, low feedstock Naphtha costs, challenging economic headwinds, and subdued downstream demand. The German Mixed Xylene market experienced a subdued trading momentum, as reflected in the weakening purchase appetite for materials. The adverse impact on market sentiment, arising from a combination of bearish factors comprising weak demand from the downstream derivative industries, has been pressuring prices lower. Consumers were seen preferring to make need-based purchases owing to a fall in orders from end-user industries. On the other hand, the German inflation rate slightly increased in May which further dampened consumer buying sentiments. In the meantime, inquiries for Mixed Xylene from the overseas market have also been observed on the lower end amid weak buying trends among the end-users which further put a strain on Mixed Xylene prices. Therefore, prices of Mixed Xylene FOB Hamburg were settled at USD 928/MT with a month-on-month decrement of 8.1% during June 2024.
For the Quarter Ending March 2024
North- America
Throughout the first quarter of 2024, a continuous upturn has mostly dominated the Mixed Xylene market across the US as rallying crude oil futures and production hiccups fuelled relentless hikes throughout the quarter. In addition, the feedstock Naphtha prices have persistently increased which in turn led to high production costs of Mixed Xylene in the domestic market, supporting the prices to follow an uptrend.
On the other side, upstream crude oil prices settled higher as hostilities continued in the Red Sea with Iran-aligned Houthis stepping up attacks near Yemen and reports of falling inventories assisting prices to edge higher. The ongoing rally in the energy market has raised the overall production costs, primarily contributing to the firmness of the Mixed Xylene market. Furthermore, amidst the winter season, the manufacturing firms have been operating at reduced rates in the domestic market.
The material availability was reported at the lower end which further led to price increases. Apart from this, shipping disruptions in the Red Sea, along with traffic constraints in the Panama Canal and deep-freezing temperatures in the US, caused delays in supply. These delays, coupled with increased shipping costs, have led to transportation costs increases. On the demand front, the inquiries from the downstream Xylene derivative mainly o-xylene, p-xylene, and o-xylene were relatively stable in the domestic market. Most market transactions were mainly based on a need-on-demand basis. Furthermore, persistent inflation and high-interest rates have deteriorated the purchasing power of consumers. As a ripple effect, prices of Mixed Xylene FOB Texas were settled at USD 1162/MT during March 2024.
Asia- Pacific
Mixed Xylene prices have continued to show a bullish rally in the South Korean market during the first quarter of 2024. The feedstock Naphtha prices have persistently increased amid drone attacks on Russian refineries and the Red Sea shipping crisis has disrupted the shipment which in turn led to the high production cost of several commodities including Mixed Xylene. Additionally, higher crude oil prices driven by geopolitical tensions such as those between Israel and Hamas, have further raised the overall manufacturing costs of Mixed Xylene. However, demand for Mixed Xylene from the downstream derivatives notably m-xylene, p-xylene, and o-xylene industry was average with limited instances of new orders reported by market players in the domestic market. Meanwhile, inquiries from the Chinese market have also remained flat as the majority of manufacturing firms have suspended operations ahead of the Spring Festival holidays. Nonetheless, it was insufficient to drive the price realizations of Mixed Xylene at the lower end in the domestic market. Furthermore, the major producer of Mixed Xylene LG Chem reported third-quarter sales dropped 3.8 percent to 13.13 trillion won from 13.66 trillion won. Throughout the quarter, manufacturing firms have been operating at reduced rates in respond to an overall decline in downstream demand. In addition, the material availability was observed on the lower end in the domestic market. Apart from this, the shipping disruptions in the Red Sea, along with existing supply delays amid restricted traffic in the Panama Canal and adverse weather conditions in the US, have exacerbated the situation. This has led to increased shipping costs, which have in turn resulted in price hikes. Thus, as a ripple effect, prices of Mixed Xylene FOB Busan were settled at USD 866/MT during March 2024.
Europe
Mixed Xylene prices have moved up across the German market throughout the first quarter of 2024. Tightening supply conditions were the main driver behind the price rise, even though demand from the downstream Xylene derivative notably p-xylene, o-xylene, and m-xylene industry has remained under pressure from economic challenges. Additionally, the international crude oil prices have been strong amidst geopolitical conflict coupled with the deep-freezing temperature in the US. Both oil benchmarks of WTI and Brent crude increased to more- than- a two-month high since the Israel- -Hamas conflict started in early October. The mounting energy prices have pushed a firming trend in the feedstock Naphtha market and turn led to the high production cost of Mixed Xylene in the domestic market. Moreover, the price rise was further supported by curtailed output rates and a few outages in the domestic market, leading the limited material availability in the domestic market, contributing to the upward shift in the price realization of Mixed Xylene. However, the overall demand situation could be described as mostly static, with market players having to deal with tepid end-user industry demand. Nonetheless, it had a limited bearing on the prices of Mixed Xylene in the domestic market. As a ripple effect, prices of Mixed Xylene FOB Hamburg were settled at USD 1075/MT during March.
For the Quarter Ending December 2023
North- America
Throughout the fourth quarter of 2023, bearish sentiment continues to sweep across the Mixed Xylene market in the US. The feedstock Naphtha prices have decreased which resulted in the low production cost of Mixed Xylene in the domestic market. These supported the prices to follow a downward trend within the domestic market. Furthermore, macroeconomic headwinds like persistent inflationary pressure and high-interest rates have eroded the purchasing power of end-users. The Fed targets 2% annual inflation but doesn’t expect to get there for several years. Market pricing indicates the central bank is likely done raising rates in this cycle, even though officials have one more increase pencilled in before the end of the year.
On the demand front, the inquiries from downstream derivative (m-xylene, p-xylene, o-xylene) industry have remained muted from the domestic market amidst weak consumption from the end-user sector. The lukewarm demand has kept exerting pressure on the seller’s side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. The deterioration in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. Market players reported demand from the overseas market has also remained on the lighter side as buyers were still not actively stocking up on the material which further weighed down the prices of Mixed Xylene.
Despite the supply chain disruption brought on by the unrest in the Red Sea and prolonged drought in the Panama Canal has had a limited impact on the supply of Mixed Xylene. Overall, the material availability was sufficient which encouraged the manufacturers to destock the inventories at low prices. As a result, prices of Mixed Xylene FOB Texas were settled at USD 976/MT during December 2023.
Asia- Pacific
Mixed Xylene prices have persistently dropped in the South Korean market during the fourth quarter of 2023. The South Korean chemical industry was currently facing unfavourable situations such as slowing economic growth, declining demand, and oversupply in the domestic market. The feedstock Naphtha prices have recorded monthly losses despite sharp fluctuations in the crude oil markets as a result of the geopolitical unrest unfolding in the Middle East which culminated in the decreased cost support for Mixed Xylene in the domestic market. On the demand front, the inquiries from downstream derivatives (o-xylene, p-xylene, m-xylene) have remained subdued as offtake from the end-user sector has remained sluggish in the domestic market. It is anticipated that demand will likely improve in the second half of Q1 2024. Furthermore, the market transactions were mainly based on small orders. In the meantime, inquiries from the Chinese market have also been observed on the negative side ahead of economic uncertainties. As per the market sources, China-bound shipments dropped 9.5% in October, indicating a weak demand. In terms of domestic production, the manufacturing firms were operating at steady rates as demand from the downstream industry showed no sign of improvement. In addition, South Korea’s manufacturing Purchasing Manager Index slightly improved from 49.8 in October to 50.0 in November signalling stable operating conditions midway through the final quarter of 2023. Despite this, the current level of inventories was sufficient which further promoted the manufacturers to clear out their existing inventories at low prices.
Europe
Throughout the fourth quarter of 2023, Mixed Xylene prices have been weakening in the German market, with the economic slump deepening on account of weak domestic demand, with downstream factory production continuing at reduced levels. The European chemical industry has been greatly affected by recent escalations in the Israel-Palestine conflict, ongoing Russia-Ukraine tensions, and shifts in the global energy market. These geopolitical events have led to continuous fluctuations in chemical raw material prices and impacted the terminal demand on a broader level. Demand for Mixed Xylene from the downstream Xylene value chain (p-xylene, o-xylene, and m-xylene) has remained lethargic in the domestic market amid sluggish consumption from the end-user sector which weighed down the prices of Mixed Xylene in the domestic market. Furthermore, market participants flagged that the deteriorating demand outlook accelerated destocking activity towards the year's end. In addition, a major producer of Mixed Xylene in the European market., Shell has reported a 34% annual drop in third-quarter profit to $ 6.2 billion as energy prices cooled with strong trading of Liquefied Natural gas (LNG) helping offset a sharp drop in its production. In addition, cost pressure from feedstock Naphtha was limited on Mixed Xylene as its prices settled on the lower end throughout the quarter. Apart from this, the manufacturing firms have been operating at reduced rates since Q3 of 2023 as demand from the downstream industry has not improved. Furthermore, according to federal statistics, German industrial production unexpectedly dropped by 0.7% in November compared to the previous month indicating a deterioration in manufacturing and industrial activity. Despite this material availability was sufficient, leading to the bearish market sentiments of Mixed Xylene. As a result, prices of Mixed Xylene FOB Hamburg were settled at USD 856/MT during December 2023.
For the Quarter Ending September 2023
North America
Mixed Xylene prices have showcased a bullish rally across the US market throughout the third quarter of 2023 supported by the high upstream prices and improved demand dynamics. The feedstock Naphtha prices have increased which resulted in the high production cost of Mixed Xylene in the domestic market. On the upstream front, crude oil prices were persistently raised stems from the production cuts made by OPEC+, and more specifically by Saudi Arabia and Russia as well as a decline in US oil inventories. Currently, the US inventories are running at historically low levels. As per the latest Energy Information Administration report, stocks declined in the week by 17 million barrels, the largest drop since 1982. Furthermore, French supermajor Total Energies was forced to shut down a unit at its 225,000 barrels per day refinery at Port Arthur in Texas in the backdrop of the leaky pump, adding to other refinery outages that have pushed the US crude oil prices. In addition, signs of economic recovery, especially from the US are raising hopes of increased demand. Meanwhile, demand from the downstream derivative (m-xylene, o-xylene, p-xylene) has remained steady in the domestic market. Additionally, the US freight and chemical industries face a dual threat as scorching temperatures and prolonged hot weather are causing water levels on the Mississippi and Ohio rivers to decrease which in turn impacted the trade activities in the domestic market. As a ripple effect, prices of Mixed Xylene FOB Texas were settled at USD 1224/MT during September 2023.
Asia- Pacific
Mixed Xylene prices have continued to rise in the South Korean market throughout the third quarter of 2023. The cost pressure from feedstock Naphtha was sufficient as its prices settled on the higher end in the given time frame. International Crude oil prices are on the upswing in the wake of production cuts by Saudi Arabia and Russia which impacted the production cost of several commodities including Mixed Xylene. On the demand front, the inquiries from downstream derivatives (o-xylene, p-xylene, m-xylene) have increased due to a rise in consumption from the end-user which supported the prices of Mixed Xylene to follow an uptrend in the domestic market. At the same time, demand from the Chinese market has stable. The downstream procurements were mainly based on immediate requirements in the Chinese market. In terms of domestic production, the manufacturing firms were operating at normal rates due to increased downstream demand. Furthermore, material availability was sufficient to cater to overall downstream demand. Overall, there were no supply chain bottlenecks or port congestion were reported in the given time frame. Thus, prices of Mixed Xylene FOB Busan were settled at USD 979/MT during September 2023.
Europe
Mixed Xylene prices have witnessed a mixed trend in the European market during the third quarter of 2023. During the initial and mid of Q3, Mixed Xylene prices have increased significantly in the German market. The international Crude oil prices are on the upswing, driven by speculations of extended production cuts by OPEC+ nations which raised the prices of feedstock Naphtha, culminating in the increased production cost of Mixed Xylene in the domestic market. Furthermore, the firm inflationary pressure and high-interest rates have eroded the purchasing power of consumers. Meanwhile, demand from the downstream derivative (o-xylene, p-xylene, m-xylene) has been steady from the domestic market. The downstream procurements were mainly based on immediate requirements. However, towards the end of Q3, Mixed Xylene prices have inched lower in the domestic market. The manufacturing firms were operating at low rates as manufacturers were hesitant to build up excessive inventory in the domestic market. However, the availability of finished stocks of Mixed Xylene was sufficient to cater to overall demand, which weighed down the prices of Mixed Xylene in the domestic market. Furthermore, Germany's manufacturing purchasing manager’s index remained in the contraction zone, indicating a deterioration in the industrial and manufacturing activities. As a result, prices of Mixed Xylene FOB Hamburg were settled at USD 1176/MT during September 2023.
For the Quarter Ending June 2023
North America
Mixed Xylene prices have shown mixed sentiments in the US market during the second quarter of 2023. During the initial of Q2, Mixed Xylene prices have inched higher in the domestic market due to improved buying trends among the end-users. Although, cost support from feedstock Naphtha remained stagnant, as reported by market participants. Despite the economic woes, demand for Mixed Xylene from the downstream xylene value chain (p-xylene, o-xylene, and m-xylene) has increased with ample new orders in the domestic market. At the same time, demand from the overseas market has also improved, which further supported the prices to follow the uptrend in the domestic market. Although, due to the weak cost pressure from feedstock Naphtha, Mixed Xylene prices have decreased towards the mid and end of the quarter. The inquiries from the downstream p-xylene industry have declined as consumption from the PET, and PTA has slowed down amid firm inflation rates and rising interest rates. Thus, the offtake of Mixed Xylene has decreased from the domestic and overseas markets. Although demand from other sectors like o-xylene has remained active as the construction industry has gained pace, it didn't inflict the prices of Mixed Xylene at a higher level. In addition, the availability of finished stock of Mixed Xylene remained sufficient amid a decline in new orders, which weighed down the prices of Mixed Xylene in the domestic market.
Asia-Pacific
Mixed Xylene prices have shown fluctuation in the South Korean market during the second quarter of 2023. During the initial Q2, Mixed Xylene prices increased in the domestic market due to improved consumer sentiments. The inquiries from the downstream xylene value chain (m-xylene, p-xylene, o-xylene) have increased in the domestic market. At the same time, consumption from the overseas market has also risen, which supported the Mixed Xylene prices to follow the uptrend in the domestic market. Although, towards the mid and end of Q2, Mixed prices drastically declined due to weak feedstock prices and limited demand. The oversupply of feedstock Naphtha has limited the positive development of Mixed Xylene. On the demand front, the inquiries from the downstream p-xylene, m-xylene, and o-xylene have remained soft, resulting in declining consumption rates. In the meantime, demand from the Chinese market was also unsatisfactory amid the slow economic recovery, which promoted the manufacturers to drop their prices. In addition, the South Korean manufacturing purchasing manager's index increased slightly from 48.4 in May to 47.8 in June, still below the bar performance underlying a contraction in new orders.
Europe
Overall, Mixed Xylene (MX) prices have decreased in the German market throughout the second quarter of 2023 amid weak feedstock prices and limited downstream demand. The mounting inflationary pressure and rising interest rates by the European central bank to tame inflation have impacted the consumer's pocket. In addition, the German inflation rate increased in June to 6.4% year-on-year, from 6.1% YoY in May, which slowed down the economic growth in Europe's largest economy, Germany. In the meantime, demand for Mixed Xylene from the downstream xylene value chain m-xylene, p-xylene, and o-xylene has remained subdued amid sluggish buying sentiments among the end-users. The market transactions were relatively flat as purchasing enthusiasm of terminal firm to enter the market were not high. The ifo Business climate index dropped from 91.5 points to 88.5 points in June. On the upstream front, Naphtha prices have also been observed on the lighter side, which further weighed down the production cost of Mixed Xylene in the domestic market. In addition, the availability of finished stock of Mixed Xylene was also sufficient amid a decline in new orders. As a result, manufacturing firms reduced their operating rates as manufacturers were cautious about building up excessive inventories in the domestic market. Although the German manufacturing purchasing manager's index slightly increased from 43.2 in May to 46.0 in June, it is still below bar performance, indicating a contraction in industrial and manufacturing activity.
For the Quarter Ending March 2023
North America
Mixed Xylene prices showed a see-saw trend in the USA market during the first quarter of 2023. During January, Mixed Xylene prices dropped on account of low buying trends in the region. Operating rates remained weak in the domestic market due to sluggish consumption from the downstream industries. Cost pressure from feedstock Toluene has eased, which resulted in the low production cost of Mixed Xylene in the region. In addition, demand for Mixed Xylene from the downstream value chain (o-xylene, p-xylene, and m-xylene) have remained gloomy from both the domestic and overseas market. Although, during February, Mixed Xylene prices increased, supported by the improved consumption from the downstream value chain industries. However, during March, Mixed Xylene prices gained a downward trend. The ribbing inflationary pressure and fears of a financial crisis amid the failure of two banks, Silicon Valley and signature bank, have exhausted the economic condition in the US market. Market participants reported the inventories of Mixed- Xylene in the US market were adequate to cater to the inquiries from the end-user market. As a result, prices of Mixed Xylene FOB Texas were assessed at USD 1119/MT during March 2023.
Asia- Pacific
Mixed Xylene prices have witnessed fluctuation in China market during the first quarter of 2023. During the initial of Q1, Mixed Xylene prices decreased, backed by the low buying interest among end-users. Furthermore, stable demand and ample supply in the domestic market have further weighed down the prices of Mixed Xylene. In addition, cost pressure from feedstock Toluene has been reduced, which resulted in the low production cost of Mixed Xylene in the domestic market. Although, during mid and final of Q1, Mixed Xylene prices increased due to improved consumer sentients in the market. Demand from the downstream value chain industry has increased. Market participants reported a sharp rise in queries from the end-user. As a result, prices of Mixed Xylene Ex- Qingdao were offered at USD 1088/MT during March.
Europe
Prices of Mixed Xylene have witnessed mixed sentiments in the European market during the first quarter of 2023. During the initial and mid of Q1, Mixed Xylene prices increased as market participants restocked the material available in the region. Volatility in the crude oil prices and high inflationary pressure further supported the elevated prices of Mixed Xylene in the European region. On the other side, feedstock Toluene prices have also inched higher, which resulted in the high production cost of Mixed Xylene in the regional market, thus boosting the prices of Mixed Xylene in Europe. Although, during the final of Q1, Mixed Xylene prices declined as the market sentiment continued to deteriorate in the backdrop of macroeconomic devastation in the banking sector. Furthermore, cost pressure from feedstock Toluene has eased, resulting in the low production cost of Mixed Xylene in the region. However, market participants reported that demand for Mixed Xylene from the downstream value chain o-xylene, p-xylene, and m-xylene has remained stagnant while the sufficient inventories to cater to overall demand. Thus, prices of Mixed Xylene FOB Hamburg were settled at USD 1007/MT during March.
For the Quarter Ending December 2022
North America
Prices of Mixed Xylene showed fluctuation in the USA market during the fourth quarter of 2022. During the first half of the fourth quarter, Mixed Xylene prices increased. Volatility in the energy prices and high inflation rate contributed to the high price of Mixed Xylene in the regional market. Demand from the downstream paints and construction and other competitive industries has been stable in the domestic market. Meanwhile, demand from the overseas market has remained on the weak side, as Europe faces soft buying sentiment. However, during the final of the fourth quarter, Mixed Xylene prices declined due to inactive inquiries from the domestic and overseas markets. Domestic production costs remained stagnant amid stable energy prices. In conclusion, prices of Mixed Xylene FOB Texas were settled at USD 1240/MT during December.
Asia- Pacific
Mixed Xylene prices have continued their bearish rally in China throughout the fourth quarter of 2022 owing to the weak cost pressure and sluggish domestic demand. Upstream crude oil prices dropped throughout the quarter, easing the overall cost of production. Meanwhile, demand dynamics remained under pressure due to the country's frequent lockdowns due to the Covid pandemic. The performance of the construction industry has been underwhelming, and the volume of offtakes remained muted, while the sufficient inventory level weighed down the prices of Mixed Xylene in the Chinese market. Thus, after conclusion, prices of Mixed Xylene Ex- Qingdao were settled at USD 1023/MT during December.
Europe
Mixed Xylene prices have witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the initial Q4, Mixed Xylene prices showed a downward trend. The decline in the price was attributed to the continual weak cost support, stability in energy prices, and cheaper Asian imports. Meanwhile, natural gas prices have shown a marginal change as the prices as the winter season moves toward their peak. Furthermore, demand from downstream derivatives and other chain industries has been weak amid soft buying sentiment in the regional market. However, prices have gained upward momentum during the mid- Q4 due to the high production cost amid soaring Natural gas prices. Meanwhile, the speculation of recession across the European market has dampened the demand from the end-user paints and coating and other competitive industries. On the other hand, in the final Q4, energy prices started to stable, leading to the stable production cost of Mixed Xylene in the regional market. Meanwhile, the supply has been supported by the cheap inflows of Asian imports. Weak demand and sufficient inventory level weighed down the prices of Mixed Xylene in the regional market. In Germany, Mixed Xylene FOB Hamburg was assessed at USD 897/MT during December.
For the Quarter Ending September 2022
North America
Mixed Xylene prices showed mixed sentiment during the penultimate quarter of 2022. Mixed Xylene prices dropped in July and August and rebounded in September. Mixed Xylene prices mirrored the crude oil fortunes. After declining consistently till August from their record pricing in Q2, crude oil prices stabilized in September as OPEC announced volume cuts. Sluggish cost pressure resulted in weak production costs. Meanwhile, demand from the downstream Paraxylene and Phthalic Anhydride has remained stable as the Polyethylene Terephthalate demand remained firm in the market. As of September, Mixed Xylene prices were assessed at USD 1235 per MT FOB USGC.
Asia Pacific
Mixed Xylene prices in the Asia Pacific market declined consistently throughout the third quarter after an initial bullish rally. Crude oil prices plummeted in August, which bodes well for the consumers as cost pressure from the upstream eased in the Chinese market. Manufacturers reported firm production rates despite ample inventories in the domestic market, which resulted in strong supply fundamentals. Meanwhile, demand from downstream Paraxylene remained stable as the Chinese market witnessed fluctuation in consumer demand amid covid related restrictions. Therefore, as of September 2022, Mixed Xylene prices were assessed at USD 1168 per MT FOB Shanghai.
Europe
Mixed Xylene prices declined sharply in the European countries throughout the quarter as Naphtha prices deteriorated after reaching record values in Q2. The cost of production remained firm in the European region despite a drop in feedstock prices as the European countries battled uncertainty around natural gas availability and a meteoric rise in LNG prices. However, cheaper imports from the Asia Pacific and North American region meant ample material availability, which eased the prices of the material in the European market. Meanwhile, demand from downstream Paraxylene remained stable to firm as the consumption rates from the Polyethylene Terephthalate market remained stable amid cheaper imports from the Asia Pacific region. In September, Mixed Xylene prices were assessed at USD 1195 per MT on an FD basis.
For the Quarter Ending June 2022
North America
The price of Mixed Xylene in the North American region showed an upward trajectory in the second quarter of 2022. The demand for Mixed Xylene increased as the downstream Phthalic Anhydride, Terephthalic Acid, and Isophthalic Acid production strengthened. The Mixed Xylene market was also inflated by the limited availability of upstream Crude as a result of the sanctions on Russian imports. So, the region's Mixed Xylene price trend climbed along with the sharply rising upstream crude price. The FOB Louisiana price thus concluded at USD 1675/ tonne in the quarter ending in June after seeing a consistent pricing trend in the US market.
APAC
During the second quarter of 2022, the price of Mixed Xylene followed mixed sentiments. Initially, the price dropped in April due to the market closure as a result of the COVID resurgence. Weak buying sentiments and the port disruption resulted in the stockpiling of the product. Later after the ease of the lockdown restrictions, the domestic market regained strength. The growing demand from PET bottle manufacturers is due to the high soft drink requirement in the summer inflated the Mixed Xylene pricing. Moreover, the active inquiries from the automotive and construction sectors have also triggered the Mixed Xylene market. As a result, the price of Mixed Xylene settled at USD 1230/ tonne Ex Qingdao in the quarter ending June 2022.
Europe
In the second quarter of 2022, the Mixed Xylene market grew in the domestic UK market. The increased upstream crude price due to the Russian invasion over Ukraine boosted the Mixed Xylene prices. Besides, the increasing demand from the domestic and regional markets also exaggerated the Mixed Xylene pricing. The ability of the Mixed Xylene to produce downstream paint and pesticides and other derivatives PTA, PA, and Isophthalic acid resulted in a high requirement for the product. Moreover, the high freight charges due to the skyrocketing fuel prices forced the traders to revise their offers. Hence, the price for CFR South Hampton settled at USD 1490/ tonne in the quarter ending June.
For the Quarter Ending March 2022
North America
Mixed Xylene demand declined with the onset of the first quarter of 2022 due to temporary decline in its consumption for gasoline blending in North America. Prices witnessed a fall of 10% in Q1 in the USA compared to the last quarter. Mixed Xylene prices were assessed around USD 891/ton FOB Texas in the USA during January and went down to USD 814/ton FOB Texas by the middle of the quarter. USA being an exporter of Mixed Xylene, contributes around 15.2% of its total world share, where majority of the enquiries were observed from Canada.
Asia Pacific
In Asia Pacific region, price of Mixed Xylene increased in Q1 of 2022 in India, South Korea and China. Mixed Xylene prices were assessed around USD 796.38/ton in India at the beginning of the quarter. Prices surged due to freight vessel tightness and port congestion. In China, demand from the downstream gasoline blending sector levied adequate cost support for Mixed-Xylene. As a ripple effect, the current spot market transactions gathered significant momentum and strengthened the producer's will to raise the offered quotation of Mixed Xylene in China.
Europe
During Q1 of 2022, Europe saw a surge in the prices due to the firm values of feedstock Benzene and Toluene because of volatility in upstream crude prices. Mixed Xylene prices were assessed at USD 1190/ton FOB Hamburg in Germany during March 2022. Additionally, robust demand from the downstream manufacturers and exorbitant freight costs also supported the pricing trend of Mixed Xylene across the European region. Moreover, acute energy crises led to the production cut that sent further ripples to the values of Mixed Xylene.
For the Quarter Ending December 2021
North America
In North America, Mixed Xylene prices experienced an upward trajectory in the fourth quarter of 2021 backed by the firm demand from the downstream Agrochemicals and Paints manufacturers. Volatility in the upstream crude oil values and strong offers of upstream Benzene and Toluene had directly supported the pricing trend of Mixed Xylene in this time frame. As USA, imports Benzene from South Korea thus, exorbitant freight charges also kept the Mixed Xylene quotations high in the US market. Thus, FOB Texas Mixed Xylene prices settled at USD 998/MT in December witnessing a significant hike of 11% since October. Mixed Xylene prices are likely to attain more gains in the upcoming month in effect of upstream crude oil prices.
Asia
In APAC, Mixed Xylene market had witnessed a downward trajectory during the fourth quarter of 2021 in effect of ample supplies and stable to narrow demand. Buying moment kept fluctuating depending upon the enquiries from downstream manufacturers. In India, a steep fall in Mixed Xylene prices was seen backed by declining feedstock Benzene values in the domestic market coupled with the surplus inventories. Moreover, Mixed Xylene market sentiments also remained dampened during the last month of the quarter in Indian market. Volatility in crude oil offers also influenced the pricing trend of Mixed Xylene. In December, Mixed Xylene Ex-Mumbai prices tumbled down to USD 736.11/MT showcasing a substantial decline of around 141/MT since October supported by the lower buying momentum and lull trade activities because of the year end.
Europe
In the European market, Mixed Xylene prices witnessed an upward trend during the fourth quarter of 2021 backed by the firm values of feedstock Benzene and Toluene because of volatility in upstream crude oil fundamentals. Additionally, strong demand from the downstream manufacturers and exorbitant freight cost also supported the pricing trend of Mixed Xylene across the European region. Moreover, acute energy crises led to the production cut that sent further ripples to the values of Mixed Xylene. Hence, FOB Hamburg prices were assessed at USD 920/MT in December witnessing a rise of USD 110/MT since October.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the overall market of Mixed Xylene witnessed an upward trajectory in North America. US aromatics market continued its stable trend with continued poor extraction spreads as blend values set the floor for mixed Xylenes in Q3 2021. Prompt spot MX prices held a roughly early to mid-130s US dollars per metric ton spread to reformate values as demand from the downstream paraxylene segment continued to lag in the early phases of Q3. However, paraxylene demand improved into the quarter which pressured the prices towards H2 of the quarter. Overall buying interest was improved as the supply tightened towards later stages of the quarter which resulted in price strengthening of Mixed Xylene. Furthermore, prices further bolstered from rising energy feedstock prices. The Pricing trend of MX seesawed from early 700s per MT in the beginning of the quarter to cross 800 mark in the 2nd half of the quarter on FOB basis.
Asia Pacific
In Q3 2021, the prices of MX observed a significant rise in the Asia Pacific region. In China, a hike in the demand for toluene during the holiday season supported the regional toluene prices along with MX prices as the upstream markets remained firm during the quarter. In India, manufacturers witnessed subsequent gains during the third quarter in their profit margins due to strong consumer sentiments in the country. Seasonal specification changes of gasoline in several countries for winter in the Northern Hemisphere are expected to result in additional volumes of Mixed Xylene flowing into the spot market in Q4. As downstream consumption from key sectors improved, market prospects of MX strengthened towards the end of the quarter which send a wave of optimism amongst the manufacturers. Ex-location prices for MX in India escalated from USD 844 to USD 862 per metric tonne in Q3 2021.
Europe
The overall market outlook of MX remained buoyant throughout the third quarter of 2021. As flooding devastated the large areas of western Germany along with Belgium, damage of billions of dollars was observed in Q3, however, the power infrastructure was restored quickly in mid-July. Impact on spot prices was muted during the quarter with market adjusting to seasonal variations in demand. FOB Hamburg (Germany) price of MX was last assessed at USD 790/MT in September Q3 2021.
For the Quarter Ending of June 2021
North America
During the second quarter of 2021, Mixed Xylene (MX) supply conditions in the North American region improved compared to the first quarter, owing to the resumption of upstream crackers in the US Gulf coast which restored the production of nearly 83% of the refineries impacted by the winter storm. Improved Mixed Xylene production supported the regional export market as enquiries were piled up from the overseas buyers. Demand was exceptional in the second quarter as the offtakes from the downstream PTA and PX industry remained high throughout the quarter. As a ripple effect, Mixed Xylene pricing trend eased with FOB Texas discussion settling at USD 740 per tonne in June.
Asia Pacific
In the second quarter of 2021, Mixed Xylene supplies in the Asia Pacific region were ample to meet the buyers’ enquiries. One of the MX units in Japan resumed production after extended turnaround. The Chinese authorities imposed consumption taxes over the imported Heavy Aromatics commodities, which translated into strong gains in the domestic price of Mixed Xylene in the second half of the quarter after a long period of stagnancy. In India, Mixed Xylene (MX) pricing trend was bolstered in the first half of the quarter due to reduced imports from the overseas suppliers, however the industrial activities were subdued amid the COVID restrictions which surged the inventory levels. Ex-Works Ahmedabad (India) discussions for MX stood rangebound between USD 830-845 per tonne in June.
Europe
Planned outages at downstream PTA plants across the region subdued demand for Mixed Xylene. Even though the plants came online by June, demand remained largely muted. This boosted the supply fundamentals which were remarked as “better” in comparison to the earlier quarter. Exports to other regions also witnessed a slump in numbers. Spot activity in the key European market was soft although contractual volumes intake remained balanced. Price trend also epitomized the market sentiments, as FOB Rotterdam price was settled at USD 760 per MT measuring a dip in comparison to Q1 price.
For the Quarter Ending March 2021
North America
As the region was hardest hit by the winter storm Uri in mid-February, the regional Mixed Xylene market remained severely impacted with the storm knocking numerous refiners and chemical plants offline for a significant period. The supplies of almost all xylenes remained constrained during Q1 2021, pushing the prices to unprecedented highs during the second half of the quarter. Strong offtakes from the downstream PTA and PET sectors surged the demand during Q1 2021. FOB Texas price of Mixed Xylene was assessed around USD 715/ton in March. Price for April deliveries witnessed a month-on-month surge of USD 100/ton, extending marked gains due to persistent tightness in the upstream markets.
Asia-Pacific
Mixed Xylene supplies in the Asian Pacific region were balanced during Q1 2021, owing to the addition of new downstream production facilities in China. However, supplies tightened during the Chinese Lunar New Year holidays, followed by the hike in crude oil prices amidst the production cuts by the OPEC+ nations. Japanese giant, ENEOS Corp. remained severely impacted since 13th Feb. by the earthquake. At Negishi, Eneos restarted production of aromatics such as benzene, mixed xylene, toluene, from 21 February. Supply shortage in February spiked the prices of Mixed Xylene by 8%, prices of Mixed Xylene in India were observed around USD 842/ton in March.
Europe
The European Mixed Xylene supplies remained tight during the quarter as several northwest European plants were operating at reduced capacity, owned to the transportation hiccups in Amsterdam-Rotterdam-Antwerp route amidst the cold weather and high-water level. Furthermore, reduced imports from the USA worsened the situation. The supply shortage was exacerbated by shutdown of major producer in Marghera industrial site in Italy having capacity of 35,000 tons/year Mixed-Xylene facility in early February. Demand surged due to better offtakes by the downstream factories.
For the Quarter Ending September 2020
North America
There was a sharp fall in the supply of Mixed Xylene by the end of the third quarter because of the seasonal storms across the US Gulf Coast which cut off nearly 10 per cent of total US’ Mixed Xylene supply. Sentiments were weighed under predictions that the MX supply in the US will continue to stay affected by reduced refinery run rates till 2021. However, demand witnessed a sudden jump in September with market sources stipulating active buying by the end consumers. However, the recovery was short-lived as the demand clawed back to its April-June levels much before expected. It is being predicted that the potential strength in spot benzene prices would lend strong support to the dampened MX prices moving into Q4.
Asia
Production of Mixed Xylenes from the Naphtha reformers and toluene disproportionation units was affected due to curtailed production margins. The news of commissioning of a new plant in south China helped in supporting the overall production capacity. Demand stood stable at the start of Q3 but accelerated moving into August and September. Recovery in the downstream consumption and buoyant end user demand triggered a sharp spike in the Asian pricing range. Indian mixed xylene offers were raised to around USD 660 per tonne in August, tracing the regional uptrend.
Europe
At the start of Q3, Mixed Xylene market was heard grappling with weak economics. The main reason behind the pressured dynamics was the poor demand, forcing curtailed poor production rates. As per the market sources, Mixed Xylene run rates were maintained at low levels throughout H2 2020, amid anticipations that the situation may continue to be the same moving into 2021. Lackluster buying kept the offers exceptionally low throughout the third quarter. The region’s MX market remained under constant stress as the news of second wave of COVID-19 infections affected the producers who had been strongly eyeing on the economic recovery which would strongly decide the growth of the xylene chain.
