o-Xylene Prices Show  Bullish Trend  in the Asian and European Markets at the Commencing of August 2023
o-Xylene Prices Show  Bullish Trend  in the Asian and European Markets at the Commencing of August 2023

o-Xylene Prices Show Bullish Trend in the Asian and European Markets at the Commencing of August 2023

  • 07-Aug-2023 6:45 PM
  • Journalist: Francis Stokes

o-Xylene prices have witnessed an upward trend in the Asian and European markets during the first week of August 2023, backed by high feedstock prices. In the Asian market, demand from the downstream sector has continued to be revived, coupled with the supply shortage amid adverse climatic conditions has pushed up the prices of o-Xylene in the regional market. Meanwhile, in the European market, demand for o-xylene remained moderate amidst economic headwinds.

According to ChemAnalyst, o-Xylene prices have increased in Asia's biggest economy, China. The latest increase in the prices was majorly attributed to the rise in demand from the downstream Phthalic anhydride industry. In addition, the Chinese market has been battered by the adverse weather conditions regions such as Sichuan and Chongqing in the south have been affected by heatwaves and power disruptions, while Typhoon Doksuri made landfall in South China's Fujian Province on Jul 29 and brought heavy rains. According to the market sources, Typhoon Doksuri is so strong that it has brought some impact on o-Xylene logistics. Some companies in South China have suspended ship transportation since the 25th or 26th of July. Moreover, traffic at the Yangtze River was halted on Jul 28. Therefore, in terms of logistics, the typhoon has indeed dealt a blow to transportation in East and South China. Looking forward, the next typhoon Khanun which might further impact the on-loading and off-loading activities, resulted in the supply shortage in the domestic market. On the upstream front, the cost pressure from the Mixed Xylene was also sufficient as its prices settled on the higher end in the domestic market. Therefore, prices of o-Xylene CFR Qingdao were settled at USD 1080/MT with a week-on-week increment of 3.7% during the week ending Aug 4, 2023.

On the other side, o-Xylene prices have increased by USD 24/MT in the German market as the traders or suppliers replenished their inventories in the market. Although, demand for o-Xylene remained moderate as consumption from the Phthalic anhydride has steady. Market participants reported that downstream procurements were mainly based on a need-on-demand basis. Meanwhile, the supply chain, which has disrupted previously by the low Rhine water level, has now been improved, and the supply of o-Xylene is operating smoothly. Hence, prices of o-Xylene CFR Hamburg were settled at USD 1373/MT during the same time frame.

As per ChemAnalyst estimation, prices of o-Xylene are anticipated to decrease in the Asian and European markets as the cost pressure from upstream is expected to ease in the upcoming weeks. Furthermore, the Asia market is experiencing an extreme summer of downpours, floods, and heat waves, which might derail the demand recovery.

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