Gloomy Demand Drives Down the o-Xylene Prices in China and Germany

The Prices of o-Xylene have gained downward momentum in Asia and the European market during the third week of November 2022 in the wake of subdued demand from the end-user sectors.

According to the data, o-Xylene prices have plunged by 2.0% in the Chinese market, supported by the decline in upstream crude oil prices. Despite this, feedstock Mixed Xylene prices were raised. At the same time, demand from the downstream derivative Phthalic Anhydride and other value chains has remained stable to weak, culminating in bearish pricing sentiment in the domestic market. Moreover, cheap imports from exporting countries like South Korea, Japan, and the Middle East, have led to the price drop. Additionally, market participants reported sufficient inventory levels and sluggish buying sentiment in the domestic market. In conclusion, prices of o-Xylene CFR Qingdao were assessed at USD1129/MT on 18th November 2022.

Similarly, in the German market, prices of o-Xylene have continued their declining trend, bolstered by the low feedstock Mixed Xylene prices. Furthermore, the supply chain was functioning normally, leading to low-cost imports from the USA and Asian region. Additionally, port congestion, vessel bunching, and yard occupancy rates have eased in the region. As a result, the supply chain's consistency bolstered the lower market price of o- Xylene. Moreover, the fear of recession has slumped the demand from downstream Phthalic Anhydride and allied industries. According to the market participants, the Europe economy is at a slow pace, and purchasers are ordering only on a need basis.

In conclusion, prices of o-Xylene CFR Hamburg were assessed at USD 1489/MT with a weekly declination of around 5.5% during the same time frame.

According to ChemAnalyst estimation, "the prices of o-Xylene may continue to decline further in the European and Asian market. The demand for the product from the downstream Phthalic Anhydride and other industries will slow- down. Meanwhile, feedstock Mixed Xylene prices will drop, which might negatively impact the production cost of the o-Xylene."