Mixed Global Trends in Paraxylene Prices Amid Upward Pressure from Upstream Market
Mixed Global Trends in Paraxylene Prices Amid Upward Pressure from Upstream Market

Mixed Global Trends in Paraxylene Prices Amid Upward Pressure from Upstream Market

  • 26-Jun-2024 3:42 PM
  • Journalist: Yage Kwon

The global prices for Paraxylene have exhibited a mixed trend. In the APAC region, prices mostly trended upward except in China, where they remained stable. The EU region also showed stability across the board, with moderate demand and supply with no major disruptions. This stability is attributed to consistent downstream demand, while upstream prices of naphtha and crude oil continued their upward trajectory.

In the APAC region, Paraxylene prices have shown a mixed trend. In the South Korean market, prices rose by 1.5%, moving from USD 1004/MT to USD 1018/MT, supported by the increase in crude oil prices. The prices for Paraxylene have generally been on an upward trend, with aromatics production potentially increasing as producers aim to capitalize on higher margins. This could result in more supplies entering the market, as the demand remains in uptrend. Market players have indicated that while physical demand is acceptable, it is not particularly strong. Conversely, in the Chinese market, Paraxylene prices have remained stable due to low demand. The upstream naphtha market has also shown stability, providing minimal support to the Paraxylene prices. The economic downturn in China has led to a significant oversupply of naphtha, causing its prices to plummet. Despite these external factors, the Chinese Paraxylene market has maintained stability due to a well-balanced equilibrium between supply and demand. Additionally, partial maintenance activities have contributed to stable domestic production of Paraxylene, ensuring that prices remain steady. This scenario highlights the robustness of internal market mechanisms in maintaining price stability despite external economic challenges.

In the European region, Paraxylene prices have remained stable in the German market, with no significant changes observed over the past several weeks. The demand has remained consistent, and the declining number of market activities by players has contributed to this price stability. Most domestic PET resin suppliers report a continued steady improvement in sales, with market fundamentals gradually improved. Producers and buyers alike are running minimal stocks, setting the stage for a potential demand squeeze in July if weather conditions improve in Northern Europe. The uninterrupted supply and normal demand have led to a supply-demand equilibrium in the region, maintaining stable Paraxylene prices. This extended analysis illustrates the varying dynamics influencing Paraxylene prices across different regions, emphasizing the impact of crude oil prices, supply-demand balance, and market activities on price trends.

According to ChemAnalyst, the prices of Paraxylene are expected to face upward pressure. The anticipated increase in prices will likely be driven by rising costs of upstream crude oil. Market participants will remain optimistic about improved market sentiments and predict a surge in demand from buyers. In Europe, downstream PET resin prices are forecasted to gradually climb due to better demand and higher import prices. Additionally, spot availability of PET resin may decrease, contributing to the upward pressure on prices. As a result, prices are expected to keep rising into July. This projection is supported by several factors: seasonal demand is expected to strengthen, inventories will be depleted, and availability will become increasingly limited. Most buyers will continue to hold relatively low inventory levels, operating under the belief that the market will remain tight. This situation will create a conducive environment for prices to firm further in the coming weeks.

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