Mixed Xylene Prices Witness a Mixed Sentiment in the Global Market
- 18-Jan-2023 5:23 PM
- Journalist: Nicholas Seifield
The prices of Mixed Xylene have witnessed an oscillating trend in the Global market during the second week of January 2023. In Germany and China, prices have slightly rebounded, bolstered by the inadequate inventory level and stable demand dynamics. Meanwhile, Mixed Xylene prices have shown a downtrend in the US market due to the bearish demand.
As per the data, Mixed Xylene prices improved marginally in the Chinese market as destocking and production cuts came to an end during this week. The domestic cost of production remained firm amid an abrupt rise in the upstream Crude oil prices. At the same time, demand from the downstream derivative (m-xylene, p-xylene, o-xylene), construction, and other competitive industries remained stagnant in the domestic market. In addition, the procurements are expected to improve in the wake of upcoming holidays. Meanwhile, the Chinese struggle with covid continued into the new year. Thus, in conclusion, prices of Mixed Xylene were offered at USD 1002/MT with a week-on-week inclination of 1.7% on 13th January 2023.
Similarly, in the German market, Mixed Xylene prices slightly rebounded as inventory levels dropped while the procurements increased after the holidays. The latest increase in the prices has been attributed to the upsurge in the upstream crude oil prices, resulting in the high production cost of Mixed Xylene in the domestic market. The WTI crude oil prices raised by 8.5% on 13th January. Meanwhile, supply chains have remained steady with stable Natural gas prices in the domestic market. In addition, demand from downstream paints & coatings and allied industries has remained steady in early assessment in 2023. However, procurements have improved in the wake of the expected increase in consumption levels in the coming weeks. Hence, Mixed Xylene FOB Hamburg prices were settled at USD 905/MT during the same time frame.
Although, in the USA market, Mixed Xylene prices have plunged by 5.1%, backed by the ample availability coupled with weak demand dynamics. Meanwhile, cheap imports from the neighboring exporting countries resulted in the price drop of Mixed Xylene in the domestic market. Market participants have reported no improvement in queries from the downstream market in the early assessment of January 2023. In addition, consumption from downstream paints & coatings and other competitive industries has decreased in the last few weeks. As a result, prices of Mixed Xylene were offered at USD 1106/MT during the previous week.
According to ChemAnalyst, “Mixed Xylene prices is likely to increase across the global market due to further expectation of rising demand from the end-user ndustry. Meanwhile, imports from the Asia- Pacific region are expected to turn costly on the back of improved pricing sentiment in the respective market, which might result in costly imports on European shores.”