USA and Asia Mixed-Xylene Prices are Stable; Prices Decline in Germany
USA and Asia Mixed-Xylene Prices are Stable; Prices Decline in Germany

USA and Asia Mixed-Xylene Prices are Stable; Prices Decline in Germany

  • 23-Nov-2022 3:56 PM
  • Journalist: Robert Hume

Mixed-Xylene prices demonstrated conflicting market sentiments across the globe during the third week of November 2022. Fear of global recession, stable demand, and a drop in upstream prices have hampered the market growth of Mixed-Xylene.

Mixed-Xylene prices have declined in the European market since the Russia-Ukraine war, and rising interest rates and high inflation are weighing on economic growth and industrial production. The latest decline in the prices was attributed to the drop in the upstream crude oil prices. Demand from the downstream derivative like o-Xylene, m-Xylene, and p-Xylene, along with paints and coating industries, has continued to remain weak amid sluggish consumer sentiments in Europe. Also, inventory levels among downstream companies increased, which pushed producers to clear stock levels. According to the market participants, European manufacturers' profit margins are particularly influenced as their production costs have dropped, coupled with adequate product availability. On the other side, the supply chain was operating normally, leading to low-cost imports from exporting countries like the USA and the Asian market. Besides, port congestion, vessel bunching, and yard occupancy rates have slid in the region. As a result, the supply chain's consistency supported the reduced market price of Mixed-Xylene. Hence, prices of Mixed-Xylene FOB Hamburg were settled at USD 1182/MT during the previous week.

However, mixed-Xylene prices in the Chinese market showed stability with a marginal increment in the wake of a slight improvement in the demand from the downstream paints and coating and allied industries. Despite this, the domestic production cost declined, supported by the ease in the upstream Crude oil prices. Therefore, prices of Mixed-Xylene Ex- Qingdao were assessed at USD 1114/MT on 18th November 2022.

Similarly, in the USA market, stable demand from the end-user sectors and supply dynamics resulted in the Mixed-Xylene prices being stagnant. In contrast, international demand has been stable to the weak side, as observed in the early H2 of Q4 2022. Market participants reported ample inventories in the domestic market. In conclusion, prices of Mixed-Xylene FOB Louisiana were offered at USD 1448/MT during the same time frame.

According to the ChemAnalyst estimation, "the prices of Mixed Xylene will be expected to decline in the coming weeks. The global cost of Mixed-Xylene will be affected by the uncertainty in the global economy, which may result in weak demand from downstream industries".

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