For the Quarter Ending December 2024
North America
In Q4 2024, mixed xylene prices in the U.S. demonstrated varied trends, with moderate increases in October and November, followed by a decline in December. The initial upward momentum was driven by strong crude oil sector support and steady production levels.
However, as the quarter progressed, weak domestic and international demand, geopolitical uncertainties, and the seasonal winter slowdown reversed the price trend. Manufacturing activity, showed persistent contraction, with declining orders in key sectors such as automotive and construction further weakening market sentiment.
Supply remained steady throughout the quarter, supported by past feedstock inventories and consistent production, though modest demand limited significant supply growth. Weak global economic conditions, compounded by fluctuating feedstock naphtha prices, affected the cost structure and purchasing behavior in downstream markets. Demand remained subdued, reflecting reduced industrial activity, geopolitical uncertainties, and cautious procurement in the construction and automotive sectors. The decline in December highlights the ongoing pressure from weak demand and uncertain macroeconomic conditions, with further challenges anticipated in the near term.
APAC
In Q4 2024, Mixed Xylene prices in China showed a modest recovery following a decline in the previous quarter, supported by stable production, low inventory levels, and steady operations from major producers like Yangzi Petrochemical and Zhenhai Petrochemical. After starting the quarter on a bearish note, prices began to stabilize in November, driven by improved supply-demand dynamics and marginal trading activity increases. Low inventory at East China ports tightened supply, preventing further price drops, while rising methanol feedstock costs created upward pressure on production expenses, contributing to a gradual price rebound. Despite these positive developments, demand from key downstream sectors such as gasoline blending, paints, and coatings remained weak, reflecting cautious buying behavior and subdued consumption from the construction and chemical industries. The construction sector, a significant consumer, faced contraction, with declines in new orders and cautious purchasing further weighing on demand. While the quarter ended on a more stable note, the overall recovery in Mixed Xylene prices remained moderate, as weak downstream demand and broader economic uncertainties continued to limit significant gains.
Europe
In Q4 2024, Mixed Xylene prices in Germany showed a declining trend, dropping 5.3% in October and 3.18% in November, before stabilizing slightly in December at USD 695/MT FOB Hamburg. The market faced persistent pressure from oversupply, weak demand across downstream sectors like construction, automotive, and PET, and subdued market sentiment. High inventory levels and reduced industrial output in Germany, coupled with the 2.76% depreciation of the Euro, further constrained price recovery, making exports less competitive. Although steady crude oil prices and consistent production from domestic refineries supported supply stability, rising energy costs added strain to production economics. Demand remained weak throughout the quarter, driven by declining activity in construction and automotive industries, along with increased preferences for sustainable alternatives and cheaper substitutes in downstream markets. While December brought some stabilization due to cautious trading and steady supply, the outlook remains bearish, with potential recovery in Q1 2025 reliant on improvements in industrial output, construction activity, and global trade dynamics.
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.
