Rising Interest and Disrupting Supply inflate the US Mixed Xylene pricing
- 01-Jul-2022 4:50 PM
- Journalist: Shiba Teramoto
Mixed Xylene pricing has been witnessing an uptrend from the previous week in the US market. The high and persistent inflation is threatening the domestic market and exaggerating the commodity’s values. Moreover, the supply chain disruption is starting to get to its worst part, further influencing the Mixed Xylene market.
The US market has been observing supply concerns since the beginning of COVID; recently, the US government has been implementing a new law to ban the import of goods from Xianjing due to forced labor. Also, the ongoing Russia and Ukraine war resulted in the imposition of import and export sanctions on Russia laying the foundation to supply chain disruptions. Hence, the limited dispenses within the country ushered in poor availability of upstream crude and hampered Mixed Xylene production. As a result, the FOB prices of Mixed Xylene rose by approximately 1%, with an increment of $20/ tonne in the week ending 17th June.
Moreover, continuous inflation in the country as the Federal reserves have been imposing an increment in interest rates since 15th June 2022. This surge in the interest elevates the price of raw materials hardly. The Mixed Xylene market also sees a hike following the upsurge in raw material prices.
Additionally, the rising demand from the downstream derivative Phthalic Anhydride, Isophthalic Acid, and Terephthalic Acid manufacturers are boosting the Mixed Xylene pricing. Strengthening import activities from the regional and international markets and high export costs also encourages the Mixed Xylene market. Besides, the air, rail, and ship freight are skyrocketing, raising the Mixed Xylene values.
As predicted by ChemAnalyst, the Mixed Xylene prices are likely to increase in the coming weeks with growing demand from the downstream markets. The purchasing activity in the domestic market might trigger Mixed Xylene prices. However, the supply chain disruption may ease, and the production of the product could gain strength. Raw material prices might not ease due to the rising disruptions caused by the conflict between Russia and Ukraine.