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Mixed Xylene Prices Show a Dip at the End of April 2023 Due to Gloomy Demand and Oversupply
Mixed Xylene Prices Show a Dip at the End of April 2023 Due to Gloomy Demand and Oversupply

Mixed Xylene Prices Show a Dip at the End of April 2023 Due to Gloomy Demand and Oversupply

  • 03-May-2023 2:49 PM
  • Journalist: Shiba Teramoto

Mixed Xylene prices have witnessed a downtrend in the Europe and Asian markets towards the end of April 2023 due to low-cost pressure from feedstock Toluene. Sluggish demand, firm supply, weak upstream prices, and high inflationary pressure, coupled with rising interest rates, have further weighed down the prices of Mixed Xylene in the respective region.

Mixed Xylene prices have declined in the German market, backed by sluggish offtakes and ample inventories in the domestic market. Domestic production rates remained under check due to a slowdown in consumption from the downstream industries. Feedstock Toluene prices have continued to deteriorate, followed by a fall in upstream Crude Oil prices, resulting in the low production cost of Mixed Xylene in the domestic market. As per the sources, Brent Crude Oil settled at around $78.22 a barrel with a week-on-week drop of $3.24 or 4.0% on 28th April 2023. On the other side, demand for Mixed Xylene from the downstream value chain (o-Xylene, m-Xylene, p-Xylene) has remained gloomy from both the domestic and international markets, which further contributes to the price decrease in the domestic market. Meanwhile, market participants have reported that demand fundamentals may strengthen further into the quarter resulting in improved pricing dynamics for Mixed Xylene. Thus, Mixed Xylene FOB Hamburg prices were settled at USD 1010/MT, a weekly decrement of USD 51/MT during the week ending 28th April 2023.

On the other side, Mixed Xylene prices have shown stagnancy with a marginal decrement of USD 8/MT in the Chinese market due to weak cost pressure from feedstock Toluene. In addition, Crude Oil prices have erased all their gains since the OPEC and producer allies, such as Russia, announced in early April 2023 an additional output reduction until the end of the year. Furthermore, consumption from the downstream o-Xylene, p-Xylene, and m-Xylene has remained stagnant in the domestic market. At the same time, the steady inflows of imports from South Korea led to better-imported material available on Chinese shores. Hence, Mixed Xylene Ex- Qingdao prices were assessed at USD 1130/MT during the same time frame.

As per ChemAnalyst's estimation, Mixed Xylene prices will likely rise in the Europe and Asian markets due to further anticipation of growing demand for Mixed Xylene from the downstream p-Xylene amid increased consumption from the PET (end-user) industry. Although, demand for m-Xylene and o-Xylene is likely to stable in the upcoming weeks. Furthermore, feedstock Toluene prices will expect to increase, which may positively impact the production cost of Mixed Xylene in the near future.

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