For the Quarter Ending September 2022
North America
North American market witnessed a mixed sentiment throughout the third quarter of 2022 owing to changing market dynamics every month. As per the market sources, demand from the domestic market remained modest to stable while changing imports fluctuated the overall market dynamics. The plastics and resins sector in the USA performed well throughout Q3 2022. However, the looming threat of recessionary conditions kept its hold on overall market movement. Additionally, it was observed that rising gasoline and diesel prices affected domestic freight costs and compelled traders to revise their offers in order to maintain their profitability. Nevertheless, declined global freight charges counterbalanced the overall pricing dynamics for the product in the US market.
Asia
As per the data, Asian m-Xylene prices showcased a decline during the first half of Q3 2022 and rebound during the other half of the quarter. In India, the monthly average prices for m-Xylene plunged initially during July and rose effectively in August and September 2022, bolstered by festivities in the country. The festive season in India was about to hit the domestic Indian market during this quarter, opportuning local convertors to stock their inventories for future needs. m-Xylene price in India was assessed at around USD 2315/MT during September 2022. On the other side, China market remained cautious about demand-supply dynamics, as the country was battling with another round of pandemic-related restrictions in the country.
Europe
European market remained disturbed due to the prolonged Russia-Ukraine war, as it has affected not only supply chain activities but also demand-supply dynamics in the whole market. Further, high natural gas prices initially affected the production costs for the product, which later started to ease down, and producers felt some relief. However, prolonged inflationary pressure has affected the demand dynamics for the product from the downstream plastics and resin segment, as inflation slowed down the economic condition of the country.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, m-Xylene witnessed a consistent rise in the US market. Following the upstream Mixed Xylene price trend, the price of m-Xylene also surged. The inflating tension caused by the sanctions on Russian imports escalated the costs of upstream crude due to the limited availability of the product. Moreover, the demand from the downstream Isophthalic Anhydride manufacturers also rose, further inflating the m-Xylene price. Also, the Federal Reserve interest hike affected the trade and boosted the m-Xylene market. Furthermore, the healthy buying activities and the high inventories in the domestic market have been triggering the m-Xylene market.
APAC
Throughout the second quarter of 2022, the price of m-Xylene showcased an oscillating price trend. As a result of the COVID revival, the market was closed in April, which initially caused the price to decline. The merchandise was stockpiled as a result of the port congestion and poor buying sentiment. The domestic market later recovered its strength after the lockdown limitations were loosened. Due to the increasing demand for soft drinks over the summer, m-Xylene cost has increased due to the growing demand from PET bottle producers. Additionally, the market for m-Xylene has been stimulated by active inquiries from the construction and automobile industries.
Europe
During the second quarter of 2022, the mixed xylene market expanded in the UK. The Russian incursion on Ukraine increased the price of upstream crude, which in turn inflated the price of m-Xylene. The tight supply of raw materials due to the sanctions on importing Russian oil further escalated the costs. Additionally, the rising demand from the local and regional markets boosted the price of m-Xylene. M-Xylene is highly demanded since it is used to make insecticides, paint, and other downstream derivatives like Isophthalic acid. Also, the traders were forced to change their offers because of the high freight costs brought on by the soaring fuel prices.
For the Quarter Ending March 2022
North America
In North America, prices of m-Xylene increased during the first quarter of 2022 due to a surge in demand from mostly paints and coatings sector. M-Xylene prices mirrored the crude oil market sentiment where the prices initially increased and went up to a very high level, then settled at a suitable range during the middle of Q1 2022. The freight cost also rose due to the ongoing war between Russia and Ukraine, increasing shipment costs and transportation charges. Furthermore, the product's global supply shortage has kept its value under persistent upward pressure, thus increasing the prices. M-Xylene prices in the USA witnessed a rise by nearly 4% in Q1-2022.
Asia Pacific
APAC saw an escalation in the prices of m-Xylene due to increased demand from downstream batteries, solvents, and intermediates enterprises. India saw an increase of 8.1% in the price of m-Xylene in the first quarter, with prices hovering around USD 1342/ton-USD 1434/ton in March. High upstream Brent crude oil prices translated into an upward trend for m-Xylene. Moreover, firm demand has been registered from the downstream isophthalic acid manufacturers, supporting the spike in m-Xylene prices. In terms of demand, consumption from downstream Plasticizers and Phthalic Anhydride remained strong. M-Xylene prices gained an upward momentum following market optimism in line with the forthcoming festive season in the regions of China during February.
Europe
In Europe, prices of m-Xylene were observed to be fluctuating in Q1 2022, with a downfall in February, which went down up to USD 815/ton CIF Hamburg, then again rebounding back in March. The fluctuating prices of upstream Naphtha and Crude Oil due to the ongoing war between Russia and Ukraine led to variations in m-Xylene prices. Freight charges on the European routes remained high throughout the quarter; however, marginal ease in shipping costs and freight charges was witnessed towards the end of the quarter. Strong demand from downstream paints, coatings, intermediates, etc., catapulted m-Xylene prices.
For the Quarter Ending December 2021
North America
In Q4, m-Xylene market in the North American region remained on the uptrend for the major past of the quarter owing to firm cost pressure from upstream WTI crude oil. Crude oil prices were volatile throughout quarter where crude oil prices initially increased on the back of strong demand fundamentals then plunged significantly in H2 of Q4 in the aftermath of another covid wave in late November. Similarly, m-Xylene prices mirrored the crude oil market sentiment where prices initially increased to USD 940 per MT and then settled at USD 895 per MT towards later stages of the quarter.
APAC
In India, m-Xylene market remained strong throughout the last quarter owing to strong crude oil values during initial months of Q4. Aromatics have traditionally mirrored the market sentiment of crude oil, and recent increase in all xylenes vindicate the above fact. In terms of demand, consumption from downstream Plasticizers and Phthalic anhydride remained strong. In Chinese domestic market, m-Xylene prices seesawed in the last quarter as initially firm demand from downstream along with rising cost pressure catapulted m-Xylene prices. However, market sentiment changes towards the H2 of Q4 and prices declined owing to slump in demand and weakening cost pressure. Prices were assessed at INR 95360 per MT in December 2021.
Europe
European market was termed as firm during Q4 of 2021 despite a marginal decline in prices during later stages of the last quarter. Strong prices of upstream Brent crude oil translated into upward trend for m-Xylene. Freight charges on the European routes remained high throughout the quarter however ease in shipping cost and freight charges was witnessed towards end of the quarter. USA major exporter of m-Xylene to Europe delivered material on the European shores irrespective of high freight charges on Atlantic routes. Hence, m-Xylene prices were assessed at USD 940 per MT after conclusion of December 2021.
