Mixed Xylene Prices Rise in the Asia and European Markets as Upstream Prices Increase
- 03-Aug-2023 5:22 PM
- Journalist: Harold Finch
Mixed Xylene prices have settled on the higher end across the Asian and European markets in the last week of July 2023, supported by high-cost pressure from upstream values. The rise in downstream demand has pushed up the prices of Mixed Xylene in the Asian market. Meanwhile, demand for Mixed Xylene remained low to moderate in the European market amid economic headwinds.
According to ChemAnalyst, Mixed Xylene prices have inched higher in Asia's biggest economy, China, amid unexpected improvements in downstream demand. The cost pressure from feedstock Naphtha was sufficient as its prices progressed upward in the given time frame. The inquiries from the downstream o-xylene and p-xylene sectors have risen as consumption from the PET bottles and Phthalic anhydride industries have improved in the domestic market, as reported by the market players. Furthermore, super typhoon Doksuri hurtled in the Pacific Ocean and Southern coast, which might impact the industrial and trade activities in the petrochemical hub of China as the news is still under development, and the exact estimation of the disruptions remains to be seen. Therefore, Mixed Xylene Ex- Qingdao prices were settled at USD 1120/MT with a week-on-week increment of 4.7% during the week ending 4.7% during the week ending 28th July.
On the other hand, Mixed Xylene prices have increased by 3.7% in the German market, backed by high-cost pressure from feedstock Naphtha prices. On the upstream front, crude oil prices have also been observed on the higher side in the European market after the production cuts by OPEC. The Brent crude oil prices were settled at $ 83.79/barrel with a weekly increment of 3.6% on 28th July. On the demand front, the domestic market's procurements from the downstream o-xylene, p-xylene, and o-xylene remained moderate. The downstream procurement was based on need-on- demand basis. At the same time, inflation is near two-decade highs, which further eroded consumer pockets. Furthermore, Europe's largest economy, Germany, has been battered by high heat waves, which in turn led to low water levels on the Rhine River, a key shipping route, being too low for full cargo loads. Although, currently, it has not impacted the supply of Mixed Xylene at a very broader level as there was bleak demand in the Eurozone. However, market players speculate if demand improves from the downstream sector and the water level persistently drops, it will lead to a supply shortage in the regional market. Therefore, Mixed Xylene FOB Hamburg prices were settled at USD 1130/MT during the same time frame.
According to ChemAnalyst estimations, it is anticipated that Mixed Xylene prices will increase in the Asia and European markets. This rise in prices is attributed to the expectations of an increase in upstream prices. The demand from the downstream industries is projected to rebound in the upcoming weeks. Furthermore, the adverse weather condition might impact trade and production activities, resulting in a supply shortage of Mixed Xylene in the region.