Bullish market scenario in China driving the Mixed Xylene prices

The prices of Mixed Xylene showcased an upward trend during this week, despite the plummeting oil prices. High operating rates in downstream inventories and healthy domestic buying activities are the major reasons for the Mixed Xylene price hike. Moreover, the demand from the downstream derivatives has also added fuel to the above mentioned scenario.

Despite the Crude oil price drop across the region, Mixed Xylene prices are rising. China gradually resumed activities after the ease of lockdown and labour day vacations. Besides the increased production of downstream derivatives, Phthalic Anhydride, Terephthalic acid, and PET resin rose. Thus, the demand for Mixed Xylene is inclining from the downstream derivative manufacturers.

However, after the labour day holiday and easing lockdown, the Chinese market has gained strength. The manufacturing plants have been resumed; the buying and selling activities have also increased.

One of the Shanghai based traders exclaimed that the domestic market is witnessing skyrocketing goods consumption post the holiday break.

As a result, the Mixed Xylene pricing rose approximately by about 3%, with an increase of $34/ tonne from 13th May to 19th May.

The surge in Fed’s interest rates has wreaked havoc on China, which is experiencing an economic crisis as a result of the pandemic. Thus, the Mixed Xylene prices have been inflicted. In addition, the skyrocketing freight charges due to the rising fuel costs showed a positive impact on the Mixed Xylene market. The manufacturers across the Chinese market were hurrying to destock the product volumes which were stockpiled during the pandemic.

According to ChemAnalyst, "Mixed Xylene prices might witness an upward trend in the forthcoming weeks as the demand from the domestic market is likely to rise. Moreover, the crude values are also expected to increase. If the lockdown ends, the supply and buying activities might grow faster, resulting in the Mixed Xylene price hike."