o-Xylene Prices Continue to Improve Across Europe and Asian Markets
- 13-Mar-2023 4:04 PM
- Journalist: Timothy Greene
o-Xylene prices raised marginally in the Asia and European markets during the second week of March 2023. Improved demand dynamics, volatile energy prices, and rising interest rates have obstructed the growth of o-Xylene in the respective market.
o-Xylene prices have gained slight momentum in the Chinese market, as prices increase by 2.7%. As per the market participants, o-Xylene demand has been stable, and there were instances of new orders inquired by the end-users, which resulted in better pricing sentiment in the domestic market. In terms of domestic production, operating rates have continued to strengthen as China looks ahead to its road to economic recovery. Traders have reported ample inventory in the Chinese ports. Meanwhile, feedstock Mixed Xylene prices have remained stable during this week.
Additionally, the Chinese market has witnessed its first month of economic expansion after July 2022. PMI in China has increased to 51.6 as manufacturing, and industrial activities strengthened after several months of below-par performance. On the other hand, consumption of o-Xylene from downstream Phthalic Anhydride and other competitive industry have improved, thus increasing the demand pressure on the o-Xylene availability. In conclusion, prices of o-Xylene were assessed at USD 1195/MT during the week ending 10th March 2023.
On the other side, o-Xylene prices witnessed stability with a marginal increment of 0.7% in the German market, backed by stable demand dynamics while the material availability remained sufficient. Meanwhile, supply chain dynamics have remained stable, resulting in normalcy in trading. In addition, consumption from the downstream Phthalic Anhydride has remained stable, while sufficient inventory is to cater to the overall domestic demand. Although German manufacturing activity contracted in February, output increased as supply chain bottlenecks showed signs of easing. Besides, purchasing manager index decreased from 47.3 to 46.3 in February, compared with the previous month. Thus, as a result, prices of o-Xylene were settled at USD 1513/MT during the preceding week.
As per the ChemAnalyst, o-Xylene prices will further increase in Asia and Europe due to growing demand from the end-user Phthalic Anhydride industry. At the same time, feedstock raw material prices may gain upward momentum, which may positively impact the downstream o-Xylene prices. In Europe, “despite the near-term forecast for colder-than-normal temperatures, the anticipated short-term boost in natural gas demand has had minimal effect on price increases, according to sources.”