Global Mixed Xylene Prices Perceive a Downtrend Amidst Higher Inventories
- 03-Jan-2023 11:52 AM
- Journalist: Gabreilla Figueroa
The prices of Mixed Xylene continued their declining trend across the globe during the last week of December 2022, backed by the steep fall in demand from the domestic and international markets amid sluggish buying sentiments in the regional market.
Mixed Xylene prices have plunged by 4.4% in the Chinese market as the demand from the downstream paints and coating and other competitive markets have remained lackluster. In addition, the domestic production cost remained stagnant amid stable upstream crude oil prices. In addition, under the influence of persistent shut-down implementation and following zero covid policy, the manufacturer has started facing a shortage of labor along with supply chain disruption. As a consequent effect, market players have estimated that prices may start rising from January 2023 in the domestic market. Furthermore, manufacturing activity contracted in December as the Covid-19 outbreaks continued to weigh on both output and demand. As per the data, PMI dropped from 48 to 47 in December, compared with the previous month. In conclusion, Mixed Xylene Ex- Qingdao prices were settled at USD 985/MT on 30th December.
Similarly, consumer sentiment has declined in the German market, which has been vindicated by the drop in the Manufacturing Purchasing Index (PMI), which dipped below 50(i.e.,47.4) in December, signifying a contraction in industrial and manufacturing activity. Additionally, demand for Mixed Xylene from the downstream paints and coating and other industries has reported a sharp drop while the material availability has been ample, further easing the prices of Mixed Xylene. Moreover, the supply has been supported by the cheap inflows of Asian imports, has another other reason for the price drop. Thus, prices of Mixed Xylene were assessed at US 842/MT during the same time frame.
On the other side, Mixed Xylene prices showed stagnancy in the USA market, backed by sufficient inventory level. Demand from the downstream paints and coating, along with allied industries, has been stable. At the same time, demand from the overseas market has also remained on the weak side amid a slowdown in the global economy. Hence, the prices of Mixed Xylene FOB Texas were settled at USD 1216/MT during the previous week.
According to the ChemAnalyst estimation, “prices of Mixed Xylene will likely increase in the Q1 of 2023 across the Global market, owing to the further expectation of improving demand from the downstream derivative sector.”