Following The Upstream Crude Oil Trend, Mixed Xylene Prices Slip in the German Market
- 27-Jul-2022 2:25 PM
- Journalist: Peter Schmidt
Hamburg, Germany: Germany is one of the major exporters of Mixed Xylene in Europe and has been witnessing a drop in Mixed xylene prices since the second week of July. The decreasing Euro values and the fear of recession support the price fall. In addition, the bearish demand from the Chinese market is also impacting Mixed Xylene pricing.
The European market has been observing a fall in the Euro since the beginning of July 2022. The fear of recession and the soaring inflation rate have been affecting the nation’s economy and causing the plunge in Euro. This condition is worsening and pulls down the prices of raw materials. Thus, the aforementioned scenario has resulted in the plummeting price trend of Mixed Xylene.
Despite the relatively snug supply of upstream Crude oil, the price of Brent Crude oil is declining in the German market. The international Crude price dropped due to the weak purchasing from China due to increasing COVID cases. As per the record, the cost of Brent Crude was hovering around $100 per barrel in the regional market. Hence, the dropping upstream Crude price negatively affects the Mixed Xylene price trend. Therefore, the cost of Mixed Xylene in the German market plunged by approximately 1%, with a 16 Euro/ tonne decrement on week ending 22nd July.
Moreover, the requirement for Mixed Xylene from the downstream derivative Isophthalic Acid, Phthalic Anhydride, and Terephthalic Acid is dropping, further pulling down the Mixed Xylene market. The poor demand from end-use automotive and construction sectors led to weak buying sentiments; hence the manufacturers have been prompted to decline their offers and sell off the stockpiled commodities.
As per ChemAnalyst, “the Mixed Xylene price will likely follow an uptrend in the coming weeks. The demand for the product might increase from the regional market. The suspension of gas supply might result in the shutdown of certain petrochemical manufacturing plants, which can lead to a tight supply of the product in the market. The upstream crude oil prices could rise, further inflating the Mixed Xylene pricing.”