Paraxylene to Follow Crude Oil Market Trend in Asia-Pacific Region
- 06-Jun-2022 3:15 PM
- Journalist: Nina Jiang
Jiangsu, China: Paraxylene price has rebounded this week, owing to the consistent hike in the Crude oil market. The augmentation in Paraxylene market is further supported by revised crude oil supply by Saudi Arabia. From the demand side, Paraxylene demand is expected to march high, mainly from the Polyethylene Terephthalate bottle and Polyester industries.
Benzene, Toluene, and mixed Xylene constitute to produce Paraxylene, which is the derivative of Naphtha. Therefore, soaring crude oil prices amid the healthy demand for Paraxylene witnessed increment in its price trend. According to the market sources, June is witnessing an upward trend in all crude derivative products. Benzene, Toluene, and mixed xylene bumped up from 1st June after Saudi Aramco increased their export price for Crude oil. Idemitsu Kosan and Reliance Industries also nominated their June prices for Paraxylene, foreseeing the continuous escalation in the Naphtha market. Today, WTI crude oil prices reached USD 119.72 / barrel.
In Saudi Arabia, the producers have increased the nomination for Crude oil for Asian import, even after OPEC+ decide of increasing the production by 640,000/barrel by July, which is also estimated to remain same, with more than 50% increase in production from previously planned estimations. This initiative take by the oil producers will led to the compensation in Russian oil supply after EU ban on 90% Russian Oil import by the end of this year. In addition, the re-opening of some cities in Shanghai since the lengthy Covid-19 lockdowns has supplemented the demand for Paraxylene in domestic and overseas markets.
According to ChemAnalyst Prediction, “The resumption in China’s market activity has continued to keep the petrochemical market flourishing alongside the prominent firmness in Crude oil may lead to the upward rally in Paraxylene market. Meanwhile, Paraxylene inventory may reduce as downstream Purified Terephthalic Acid plants maintain high operating rates with a tight supply of raw material. Therefore, analysts anticipate an increasing price of Paraxylene, supported by high demand and soaring crude oil market trend.