The US o-Xylene market strengthened through March as tightening feedstock availability, stronger coatings demand and disruptions linked to the Middle East war supported a firm upward trend. Early month activity was steady, with coatings producers increasing operating schedules, while polyester and PET demand softened mid month. Offshore inflows remained limited, and higher freight and insurance costs added pressure, reinforcing a bullish tone. Divergent demand patterns persisted, with coatings and architectural formulations firm and polyester consumption subdued. Supply fundamentals also supported the uptrend, as refiners operated at moderate utilisation rates and mixed xylene availability stayed tight. Rising crude benchmarks and war related shipping delays increased extraction costs and kept FOB values elevated. Weekly movements accelerated late in the month, with thin inventories and restricted global availability amplifying short term volatility. The near term outlook remains upward leaning, supported by strong coatings demand, precautionary inventory builds and constrained feedstock flows, though gains may moderate as summer demand patterns emerge.
