Mixed Xylene Prices Have been Rising Globally due to Crude Oil Scarcity

The Mixed Xylene market has been witnessing significant growth in the global market since the previous week. The increasing price trend is backed by various factors like upstream crude price hikes, limited product supply, trade disruption, etc.

As per the ChemAnalyst database, in the APAC region, the Mixed Xylene values are experiencing a significant rise due to the limited availability of the raw material. The trucker's strike in South Korea has been disrupting trade activities, resulting in delayed exports. In addition, the insurance sanction on the Russian tankers carrying crude oil to the Asian region inflicted the upstream crude values. The soaring upstream prices are forcing the suppliers to raise their offers by around 8%, and the mixed Xylene price inclined for approximately $90/ tonne from 3rd June to 10th June.

The EU's ban on the Russian oil imports and the Royal Dutch Shell's oil refinery turnaround for maintenance from early Jan to the end of June has been causing a supply shortage of the upstream Crude in the Netherlands. Since Mixed Xylene is one of the primary crude derivatives, the poor availability of Crude results in the low production of Mixed Xylene; hence, the low inventory levels coupled with increased demand from the domestic and global markets ushered in an escalating Mixed Xylene price trend.   

The US market keeps witnessing healthy buying sentiments from the regional market. The immense inflationary pressure from derivative terephthalic acid, isophthalic acid, and phthalic anhydride market players contributed to an uphill price trend in the Mixed Xylene market. Moreover, the rising fuel prices and the skyrocketing air, road, and ship freight added fuel to the aforementioned scenario.

According to the ChemAnalyst, "The Mixed Xylene trend might continue to push up in the forthcoming weeks. Tight supply in the upstream Crude may result in a price hike. Besides, the sanction on the Russian oil imports is expected to cause a Crude oil shortage. However, the inflation in the energy levels due to the geopolitical tension might trigger the Mixed Xylene pricing."