Weak Demand Drives Down the Mixed-Xylene Prices in Europe and Asia
- 07-Dec-2022 3:08 PM
- Journalist: Gabreilla Figueroa
Mixed-Xylene prices have continued to drop in the Asia and Europe markets during the first week of December, bolstered by stable energy prices, gloomy demand, abundant inventory levels, and low imported prices.
According to the data, Mixed-Xylene prices have significantly decreased by 5.6% in the South Korean market due to cooling market conditions, sustained cost pressure, and weak underlying demand from domestic and overseas markets. Additionally, consumption of Mixed-Xylene from the downstream paint and coating, along with derivative industries, has remained weak amid sluggish consumer sentiment. In addition, South Korea's export rate fell in November owing to the global economic slowdown amid elevated inflation and aggressive monetary tightening by major economies, coupled with the impact of the trucker's strike. Meanwhile, participants have reported early destocking activities in the domestic market. Hence, as a result, prices of Mixed-Xylene were assessed at USD 844/MT on 2nd December.
Similarly, in the German market, prices of Mixed-Xylene have plunged by 3.8% as concern over lower demand amid ample inventories put a strain on the manufacturers to clear their stocks at discounted prices. Additionally, the domestic production cost has stagnated due to steady natural gas prices. Also, industrial operation rates have been improved, normal supply, and sufficient level of inventories, the other fact for the Mixed-Xylene price decline in the domestic market. On the other hand, freight charges from Asia to Europe have eased, which leads to low Asian imports. Additionally, port congestion was reduced with better space availability, which caused the supply chain to operate normally. Moreover, demand for Mixed-Xylene from the end-user paints and coating sectors has continued to remain weak amid low consumer confidence. Meanwhile, ifo reported that inflation rates have eased in Europe, averting the looming threat of a recession. As a result, prices of Mixed-Xylene were settled at USD 1012/MT during the same time frame.
According to ChemAnalyst estimation, "The price of Mixed-Xylene will likely continue falling in Asia and Europe due to falling energy prices and soft market sentiments. Furthermore, manufacturers are clearing out existing stockpiles in December, even at a low cost. Demand from the downstream paint and coating industries will likely slow down."