Mixed Xylene Prices revised down on deteriorating buying interest in Europe
Mixed Xylene Prices revised down on deteriorating buying interest in Europe

Mixed Xylene Prices revised down on deteriorating buying interest in Europe

  • 30-Apr-2024 4:42 PM
  • Journalist: S. Jayavikraman

Hamburg (Germany): After maintaining an uptrend in the prior week, European Mixed Xylene prices softened in the last week of April 2024 due to weak derivative demand. The fragile buying sentiment surrounding the market was further deteriorated by sharp volatility in crude oil futures, coupled with a weekly loss in feedstock prices. As May approaches, mixed projections arise given the high cost and bleak downstream demand.

According to ChemAnalyst's latest database, prices of Mixed Xylene have significantly declined by USD 50/MT in the German market. The cost support from feedstock Naphtha was limited for Mixed Xylene as its prices remained on the lower end since the start of April 2024, contributing to the downward shift in price realization of Mixed Xylene within the domestic market. Additionally, after witnessing a bullish rally over the past few months, crude oil prices have recently corrected downward as worries over tension in the Middle East have slightly eased, coupled with slowed business activity in the United States. A fall in US crude inventories has further dragged down oil prices. Overall, the sharp fluctuations in oil prices, coupled with a weekly drop in raw material Naphtha prices, resulted in a flattening of prolonged support from the cost side. Consequently, most Mixed Xylene offers were less firm compared to prior weeks, reflecting heightened caution among buyers.

Despite the easing inflation rate, demand for Mixed Xylene from downstream Xylene derivatives, including m-xylene, p-xylene, and m-xylene industries, was average due to less consumption from the end-user sector, weighing down Mixed Xylene prices. The majority of market transactions primarily operated on a demand-driven basis. Although consumption of Mixed Xylene from the gasoline blending industry was moderate in the domestic market, inquiries from the overseas market were sluggish as buyers complained about the unsatisfactory outlook for end-product demand, further encouraging manufacturers to operate at lower price levels.

However, market reports indicate that manufacturing firms are still operating at reduced rates amid sluggish downstream demand. Material availability was limited to meet existing downstream demand, though due to tepid demand, it did not impact Mixed Xylene prices within the domestic market significantly. As a ripple effect, Mixed Xylene prices FOB Hamburg settled at USD 1080/MT during the week ending April 26th, 2024.

As April nears its end, ChemAnalyst anticipates Mixed Xylene prices might gain pace in the European market. However, demand from the downstream industry is not expected to improve until June 2024. Furthermore, feedstock Naphtha prices are anticipated to increase along with a bullish forecast for crude oil prices, which might positively impact Mixed Xylene prices in the regional market. Moreover, the supply of Mixed Xylene is expected to remain tight due to the low production rate.

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