Global Mixed Xylene Prices Increased Due to Improving Demand From Downstream Sectors
- 24-Jan-2023 7:07 PM
- Journalist: Shiba Teramoto
Prices of Mixed Xylene have witnessed an upward trajectory across the globe during the third week of January 2023. The primary factor for the price increase was the elevated production cost, improved demand, and limited material availability.
As per the data, prices of Mixed Xylene have been increasing in the German market due to firm production costs with improving market conditions. On the demand side, the market participants have reported that the construction industry has been expanding slightly as new orders from the paints and coatings industries have progressed slower. However, procurement from the other derivative industries, m-xylene, o-xylene, and p-xylene, has remained stagnant. In addition, upstream crude oil prices increased, resulting in the overall high production cost of Mixed Xylene. According to International Energy Agency (IEA), global crude oil demand has risen as China lifted its pandemic restrictions and resumed its trade activities, improving the cost pressure on its downstream Mixed Xylene prices. On the upstream front, at the end of 2022, the German refineries in Leuna and Schwedt discontinued the purchases of Russian crude oil. In conclusion, Mixed Xylene FOB Hamburg prices were settled at USD 950/MT with a weekly increment of USD 45/MT on 20th January 2023.
On the other hand, Mixed Xylene prices have been raised by USD 20/MT in the Chinese market due to the high-cost pressure from the feedstock Toluene. The inquiries from downstream construction and other competitive industries have improved and strengthened the Mixed Xylene market fundamental in China’s domestic market. Thus, Mixed Xylene Ex-Qingdao prices were offered at USD 1022/MT during the same time frame.
Similarly, the Mixed Xylene market in the USA has stabilized, and price fluctuations have been minimal. In addition, there was a sufficient supply of products in the domestic market, and purchases from downstream suppliers were driven by demand. Moreover, the manufacturers have marginally changed their pricing quotations to retain their profit margins. As a result, Mixed Xylene prices were assessed at USD 1116/MT with a weekly increment of 0.9% during the previous week.
According to ChemAnalyst, “Global Mixed Xylene prices pricing is likely to rise in the upcoming weeks due to further expectation of rising demand from the end-user construction and allied industries. Meanwhile, feedstock Toluene prices are expected to increase, which may impact the production cost of Mixed Xylene.