Asia Mixed Xylene Oversupply Continues to Stress Manufacturers Amid Market Uncertainties
Mixed Xylene supply overhang in countries like China and Taiwan has led to a weakening of their import demand, with majority of the deals stressing on the floating price. Prices of Mixed Xylene remained nearly stable amid feeble consumption and sufficient inventories, piled due to excess supply in the beginning of the month. China’s buying sentiments declined by existing stocks and slow demand for gasoline blending. However, the industry is dwelling on a ray of hope by rebounding of demand for isomer grade Mixed Xylene. Despite of lacklustre demand, supply across Asia is bound to increase as several manufacturers are already operating their catalytic reformers at the threshold level. Mixed Xylene supply is excess across Southeast Asia as Naphtha crackers provide better economic output when operated at full load. The situation of supply overhang is likely to persist in the near term with countries such as India, having enormous production capacity of Naphtha Crackers, is not considering slowing down the operations. Furthermore, lukewarm demand for jet fuel has continued to tremble the market fundamentals of Naphtha, the prime raw material for reformers A leading producer revealed that manufacturers are compelled to adjust their production rates if there is an abundant supply from any of their competitors on the back of the profit they are making from Olefins.