Late in November, the U.S. o-xylene market strengthen as a result of consistent demand due to continuous feedstock supply constraints, despite having a bit more feedstock available. Automotive assembly lines continue to be one of the largest contributors to o-xylene demand. Additionally, steady demand for both phthalic anhydride and PVC films due to construction, packaging, and continued parcel shipping activity provided additional support to the o-xylene sector. Sustained high levels of durable goods manufacturing and unbroken levels of exports for derivative products supported the overall optimism regarding the o-xylene marketplace. While refiners were operating at increased utilization rates, indicating an available amount of mixed-xylene feedstock; there was also sufficient downstream support to drive upward price pressure on the market. Availability at the spot level of o-xylene is constrained due to a limited number of imported supplies. There has been a small amount of price weakness on o-xylene prices due to some reduction in demand from the construction market, softening demand from the automotive interior industry as well as year-end destocking/adjustments to inventories and seasonal winter weather, but these factors are not sufficient to offset the general bullishness generated by the key consumption segments of the o-xylene sector. Most analysts believe U.S.-based fundamentals will remain firm for the near term.
The U.S. market for o-xylene strengthened during second half of November due to continuing demand from downstream markets, limited supply from merchants and stable manufacturing operations. o-xylene market participants commented on an increasing upward trend in the pricing of this product due to sustained positive sentiments from buyers and sellers, even though there are mixed supply signals.
The week ending November 21, 2025, saw an increase of +1.14% in momentum in o-xylene market due to a consistent demand from phthalic anhydride plants. Automotive production represented few of the total U.S. consumption of o-xylene, and most of the remaining volume went to the construction and packaging sectors. These end-user markets continue to experience consistent consumption rates of o-xylene, providing a strong foundation for negotiation purposes for producers.
The o-xylene industrial performance indicators also added to the positive response from buyers and sellers in this market, particularly since durable goods have shown no signs of decreasing. The stable o-xylene export level of downstream products has also been maintained, and this has prevented a significant downward impact on overall macroeconomic performance. Similarly, the continued stability of parcel shipping volumes has continued to support the production of flexible PVC films, creating a niche but reliable volume of consumption to further support the position of sellers.
The weekly increase in o-xylene market momentum has been limited by multiple factors. U.S. refinery crude oil runs increased per day for a total national utilization rate. This increase in o-xylene refinery throughput was indicative of strong availability of mixed xylene feedstocks, which helped alleviate the supply tightness associated with increased demand. Thus, the overall trend will continue to be positive, with increased downstream demand outpacing improved supply conditions.
The momentum carried over into the week ending 28th November, as o-xylene market fundamentals continued to support a firm market. The merchant supply was still constrained, with domestic producers currently covering enough of the needed U.S. production. Due to the limited supply of o-xylene imports, the spot market at the time remained very tight, while the continued flow of goods into downstream sectors remains strong.
o-xylene downstream sector, phthalic anhydride production remained relatively stable, due mainly to the continued stability of the automotive, building and construction, and packaging markets, along with the continued e-commerce driven PVC film market. Collectively, these markets provided some stability and a positive outlook for seller sentiment.
While bearish impulses remain, there are reasons beyond muted construction activity and weak automotive interior sales that hold down phthalic anhydride processing volumes for now. Also, as o-xylene distributors prepare for the end of the year and cut back on inventory levels in anticipation of a holiday rush in December, winter shoulder effects may provide some downtrend support, but this support will not likely create substantial volatility compared to general market support.
Looking ahead, ChemAnalyst is predicting the overall health of the U.S. o-xylene market to remain solid, with both ongoing demand from downstream consumers combined with a limited marketplace for imported materials outweighing the adverse effects of traditional seasonal downturns from early winter and continuing pressure to lower inventory levels of o-xylene.
