For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the m-xylene market in the US experienced a sustained increase, driven primarily by surging crude oil futures and production disruptions, fuelled by relentless hikes throughout the quarter. In addition, the feedstock Mixed Xylene prices have persistently increased which in turn led to high production costs of Mixed Xylene in the domestic market, supporting the prices to follow an uptrend. On the other side, upstream crude oil prices settled higher as hostilities continued in the Red Sea with Iran-aligned Houthis stepping up attacks near Yemen and reports of falling inventories assisting prices to edge higher.
The ongoing rally in the energy market has raised the overall production costs, primarily contributing to the firmness of the m-xylene market. Additionally, reduced manufacturing activity during the winter season led to lower material availability, further driving up prices. Apart from this, shipping disruptions in the Red Sea, along with traffic constraints in the Panama Canal and deep-freezing temperatures in the US, caused delays in supply.
These delays, coupled with increased shipping costs, have led to transportation cost increases, further supporting the prices to follow an uptrend in the domestic market. Furthermore, persistent inflation and high interest rates have deteriorated the purchasing power of consumers. Meanwhile, on the demand front, the inquiries from the downstream Isophthalic acid were relatively average in the domestic market as consumption from the end-user PET resin has slowed down amid off-season dullness. Nonetheless, it had a limited bearing on the prices of m-xylene.
Asia- Pacific
m-xylene prices have witnessed a mixed trend in the Asia-Pacific region during the first quarter of 2024. During the first half of 2024, m-xylene prices have increased in the Indian market as market players restocked the inventories in the domestic market. The cost support from feedstock Mixed Xylene was sufficient on m-xylene as its prices settled on the higher end in the domestic market. Additionally, overseas crude oil prices have also increased by more than 1% on 25th January 2024, sustained by a larger-than-expected US crude draw, Chinese stimulus, and continual attacks by the Houthis in and near the Red Sea. These all factors lead to bullish market sentiments of m-xylene among the manufacturers. Apart from this, imports from the Chinese market have turned costly which in turn led to high imported prices of m-xylene. However, m-xylene prices have started to decline towards the second half of 2024. The consumption from the downstream Isophthalic acid was average in the domestic market which weighed down the prices of m-xylene in the domestic market. Most market transactions were mainly based on small orders. Furthermore, m-xylene players have reported adequate material availability in the domestic market, which was keeping them away from committing to fresh import offers. The previous quarter witnessed an uptick in offers from China, but buyers mostly ignored the higher levels resulting in high-end prices disappearing in March.
Europe
m-xylene prices have witnessed a bullish rally in the German market during the first quarter of 2024. Supply constraints were the primary factor driving the price increase, despite ongoing economic challenges putting pressure on demand from the downstream Isophthalic acid sector. Additionally, cost support from feedstock Mixed Xylene was sufficient for m-xylene as its prices settled on the higher end in the domestic market. These supported the prices to follow an uptrend in the domestic market. On the upstream front, crude oil prices surged by more than $3/barrel with Brent crude crossing above $90/barrel amid heightened fears of supply disruptions following unofficial reports of explosions in the Middle East. In addition, the oil rally has further fuelled a strong trend in several commodities including m-xylene. However, the demand for m-xylene from the downstream Isophthalic acid was yet to provide full support for the ongoing upswing in m-xylene prices. Market players report, that higher prices indeed result in more active buying activity, but it remained at replenishment rather than stockpiling amid underperforming downstream sectors. Moreover, the series of holidays across the region has also dampened the market trading atmosphere. Meanwhile, imports from the Asian market were higher amid elevated freight rates, disrupted supply chains, and firming in other major global markets, further supported the prices to follow an uptrend in the domestic market.
For the Quarter Ending December 2023
North America
m-xylene prices have continued to decrease in the US market during the fourth quarter of 2023. The cost pressure from feedstock Mixed Xylene was inadequate on m-xylene as its prices settled on the lower end in the domestic market. These supported the prices to follow a downtrend in the domestic market. Furthermore, macroeconomic challenges such as ongoing inflationary pressure and elevated interest rates diminished the purchasing power of end-users. While the Federal Reserve aimed for a 2% annual inflation target, achieving this goal was not anticipated for several years. Market indicators suggested that the central bank was likely concluding its rate hikes in the current cycle, even though officials had one more increase planned before the year's end.
On the demand side, inquiries from the downstream Isophthalic acid industry have remained lukewarm in the domestic market due to weak consumption from the end-user PET resin and its derivative sector. This weak demand continued to place pressure on sellers, with buyers either making limited purchases when necessary or adopting a cautious stance in anticipation of potential further declines. The fall in downstream demand could be attributed to underperforming end businesses and global economic uncertainties. Meanwhile, demand from the overseas market has also soft as buyers refrained from actively stocking up on the material, further contributing to the downward pressure on m-xylene prices.
Despite disruptions in the supply chain caused by turmoil in the Red Sea and prolonged drought in the Panama Canal, material availability was sufficient to cater to overall downstream demand which further deteriorated the prices of m-xylene in the domestic market.
Asia- Pacific
Throughout the fourth quarter of 2023, the South Korean market witnessed a consistent decline in m-xylene prices, mirroring challenging conditions in the nation's chemical industry. Factors such as decelerating economic growth, diminished demand, and an oversupply in the domestic market contributed to these unfavourable circumstances. Despite the volatile fluctuations in crude oil markets caused by geopolitical unrest in the Middle East, feedstock Mixed Xylene prices recorded monthly losses, leading to reduced cost support for m-xylene within the domestic market. On the demand side, inquiries from the downstream Isophthalic acid industry remained subdued, reflecting persistent sluggishness in off-take from the end-user PET resin and its derivative sector in the domestic market. There is an anticipation that demand may witness improvement in the latter part of Q1 2024. Notably, market transactions were predominantly characterized by small orders. Meanwhile, inquiries from the Chinese market showed a negative trend, influenced by economic uncertainties, with China-bound shipments experiencing a 9.5% drop in October, indicating weakened demand. In terms of domestic production, manufacturing firms maintained steady rates, indicating a lack of improvement in demand from the downstream industry. Additionally, South Korea's manufacturing Purchasing Manager Index slightly improved from 49.8 in October to 50.0 in November, indicating stable operating conditions midway through the final quarter of 2023. Despite this stability, existing inventory levels were considered sufficient, prompting manufacturers to clear out their current inventories at discounted prices.
Europe
The European chemical industry grappled with significant challenges due to heightened tensions in the Israel-Palestine conflict, ongoing Russia-Ukraine geopolitical issues, and shifts in the global energy market. These geopolitical events led to continuous fluctuations in chemical raw material prices, impacting terminal demand on a broader scale. During the last quarter of 2023, the German market witnessed a decline in m-xylene prices, driven by a deepening economic downturn linked to weakened domestic demand. Factory production downstream continued at reduced levels during this period. Within the domestic market, the demand from the downstream Isophthalic acid industry remained dull influenced by slow consumption from end-user sectors. This contributed to a downward pressure on m-xylene prices. The spot market transactions were also average as the enthusiasm of terminal firms to enter the market was not strong. Apart from this, macroeconomic headwinds notably firm inflationary pressure and high interest rates have further eroded the purchasing power of end-users. Market participants observed that the deteriorating demand outlook accelerated destocking activities toward the end of the year. Moreover, the decrease in feedstock Mixed Xylene prices resulted in a lower production cost for m-xylene in the domestic market. Simultaneously, competitively priced offers from the Asian market further weighed down m-xylene prices in the German domestic market. Additionally, manufacturing firms operated at reduced rates since Q3 of 2023, reflecting the lack of improvement in demand from the downstream industry. In addition, Federal statistics revealed an unexpected 0.7% drop in German industrial production in November compared to the previous month, indicating a decline in manufacturing and industrial activity. However, inventory levels were sufficient to meet overall downstream demand, contributing to bearish market sentiments for m-xylene.
For the Quarter Ending September 2023
North America
m-xylene prices have demonstrated an upward trend in the US market during the third quarter of 2023. The feedstock Mixed Xylene prices have continued to rise, uplifted by strong Naphtha prices resulting in the high production cost of Mixed Xylene in the domestic market. On the other hand, according to the US Bureau of Labour Statistics, the annual inflation rate in the US accelerated for a second straight month to 3.7% in August from 3.2% in July, on the back of high energy prices. This rise in inflationary pressures has further taken a toll on the purchasing sentiments of the end-use industries. Meanwhile, demand for m-xylene from the downstream Isophthalic acid industry has remained inactive due to sluggish consumption from the end-user sector but it was insufficient to drive the price realizations of m-xylene at the lower side in the domestic market. The spot market transactions were also average. In addition, the operating rates remained steady as demand from the downstream industry had not fully recovered in the domestic market. Additionally, the US freight and chemical industries face a dual threat as scorching temperatures and prolonged hot weather are causing water levels on the Mississippi and Ohio rivers to decrease which in turn impacted the trade activities in the domestic market. However, the current level of inventories was sufficient to cater to overall downstream demand.
Asia- Pacific
m-xylene prices have persistently increased in the South Korean market during the third quarter of 2023. The cost pressure from Mixed Xylene was sufficient as its prices settled on the higher side in the domestic market. However, demand for m-xylene from the downstream Isophthalic acid remained lackluster as consumption from the end-user sector has slowed down in the domestic market. The market transactions were relatively light as the enthusiasm of the terminal firm to enter the market was not strong. At the same time, demand from the Chinese market has also been observed on the lighter side, it was insufficient to drive the price realizations of m-xylene at the lower side in the domestic market. Furthermore, South Korea's chemical exports in September dropped by 6.1% year on year to $ 3.82 bn indicating a lukewarm global demand. In terms of domestic production, the operating rates remained low as demand from downstream industries had not fully recovered in the domestic market. The availability of finished stock of m-xylene was sufficient to cater to overall downstream demand as new orders declined in the domestic market.
Europe
m-xylene prices have witnessed mixed sentiments across the European market during the third quarter of 2023. During July and August, prices of m-xylene have increased in the German market. The feedstock Mixed Xylene prices have continued to rise, followed by strong Naphtha prices which in turn lead to high production costs of m-xylene in the domestic market. However, during September m-xylene prices have inched lower due to low feedstock Mixed Xylene prices. In addition, the German market has faced persistent firm inflationary pressure and high interest rates which eroded the purchasing power of end-users. Meanwhile, demand for m-xylene from the downstream Isophthalic acid industry has remained subdued due to weak consumption from the end-user sector. The lukewarm demand has kept exerting pressure on the seller’s side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. The worsening in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. The manufacturing firms were operating at low rates as manufacturers were hesitant to build up excessive inventory in the domestic market. However, the availability of finished stocks of m-xylene was sufficient to cater to overall demand, which weighed down the prices of m-xylene in the domestic market.
For the Quarter Ending June 2023
North America
m-xylene prices have shown mixed sentiments in the US market during the second quarter of 2023 due to fluctuation in feedstock prices. During the initial Q2, m-xylene prices decreased in the domestic market. The global economic headwinds, such as high inflationary pressure, tightened monetary policies, and rising interest rates, have impacted the market growth of m-xylene. The demand from the downstream Isophthalic acid industry has remained soft, resulting in declining consumption rates. Although, during the mid-of Q2, m-xylene prices have slightly improved as demand from the downstream Isophthalic acid industry has rebound in the domestic market. However, towards the end of Q2, m-xylene prices have gained a downtrend in the domestic market due to weak cost pressure from feedstock Mixed Xylene. The inquiries from the downstream Isophthalic acid have decreased. The market transactions were mainly based on small orders. The level of inventories remained sufficient to cater to overall downstream demand, and as a result, prices operated at a low level in the domestic market.
Asia-Pacific
m-xylene prices have shown mixed sentiments in the Chinese market during the second quarter of 2023. During the first half of Q2, m-xylene prices have increased as the demand from the downstream Isophthalic acid has improved slightly in the domestic market. The downstream procurements were mainly based on a need-on-demand basis. On the upstream front, the feedstock Mixed Xylene has increased, which resulted in the high production cost of m-xylene in the domestic market, which boosted the prices of m-xylene. Although, during the second half of Q2, m-xylene prices decreased due to weak cost pressure from feedstock Mixed Xylene. The demand from the downstream Isophthalic acid industry was average. The buyers were unwilling to buy the goods at higher prices. Furthermore, on the supply side, the inventory level has been increased amid a reduction in new orders from the end-use industries, which further weighed down the prices of m-xylene in the domestic market. In addition, China's manufacturing sector has been experiencing a downward trend since March, as reflected by the official manufacturing purchasing managers' Index (PMI), recording a value of 48.8 in May 2023.
Europe
m-xylene prices have remained subdued in the German market throughout the second quarter of 2023 amid weak feedstock prices and tepid downstream demand. The firm inflationary pressure and rising interest rates by the central bank to tame inflation have impacted the market growth of m-xylene. The demand from the downstream Isophthalic acid has tepid amid sluggish consumer sentiments. The market transactions were relatively average as purchasing enthusiasm of terminal firm to enter the market were not high. The ifo Business climate index dropped from 91.5 points to 88.5 points in June. On the upstream front, Mixed Xylene prices have also been observed on the lower side which further weakened the prices of m-xylene in the domestic market. In addition, the availability of finished stock of m-xylene was also sufficient amid a decline in new orders as a result manufacturing firms reduced their operating rates as manufacturers were cautious to build up the excessive inventories in the domestic market. Although the German manufacturing purchasing manager's index slightly increased from 43.2 in May to 46.0 in June, it still below bar performance, indicating a contraction in industrial and manufacturing activity, thus the positive development of m-xylene has decreased, and prices operated at a low level in the domestic market.
For the Quarter Ending March 2023
North America
m-xylene prices have shown fluctuation in the USA market during the first quarter of 2023. During the initial of Q1, m-xylene prices have dropped, backed by dull buying sentiments and ample supply in the market. Additionally, operating rates remained stable in the domestic market, while the cheap import offers from the Asian market have led to better imported material availability. In addition, demand from the downstream isophthalic acid has remained gloomy in the domestic market. Market participants reported limited queries about new orders. Although, during mid and final of Q1, m- xylene prices have rebounded despite the ribbing inflationary pressure and fears of a financial crisis amid the failure of two banks Silicon Valley and signature bank, the demand for m-xylene from the downstream isophthalic anhydride have increased which promoted the traders to raise their price quotation.
Asia- Pacific
m-xylene prices have increased in the Chinese market during the first quarter of 2023 on account of improved buying trends after the Lunar New Year holidays. Feedstock Mixed Xylene has shown fluctuation throughout the quarter. Meanwhile, demand for m-xylene from the downstream isophthalic industries has increased, which has another reason for the price increase in the domestic market. In addition, operating rates have improved in China for the first time since the last quarter as demand has enhanced in the Chinese market. Meanwhile, imports from exporting countries have faced difficulty as China ports were congested with an average waiting time is 0 to 24 hours. Port intermittent port closure and congestion amid strong winds and dense fog. Thus, limiting the material availability in the domestic market. Therefore, increased demand and supply shortages in the domestic market have encouraged traders to raise their price quotations.
Europe
m-xylene prices have witnessed mixed sentiments in the European market during the first quarter of 2023. In the first two-month of 2023, m-xylene prices have increased as market participants restocked the material available in the region. Although, demand from the downstream isophthalic acid has improved at a slower pace. Moreover, volatility in crude oil prices and high inflationary pressure are other reasons for the price increase in the regional market. In addition, feedstock Mixed Xylene prices have also inched higher, which resulted in the high production cost of m-Xylene in the regional market. However, towards the end of Q1, m-xylene prices dropped as the market sentiment continued to deteriorate in the backdrop of macroeconomic devastation in the banking sector. Market participants reported that demand from the downstream isophthalic acid has remained stagnant while the sufficient inventories to cater to overall demand.
For the Quarter Ending December 2022
North America
Prices of m-xylene have witnessed a mixed trend in the USA market during the fourth quarter of 2022. During the first half of the month, m- xylene prices increased. High inflation rate and volatile energy prices contributed to the high price of m-xylene in the regional market. Demand from the downstream isophthalic acid and other competitive industries has been stagnant in the domestic market. Meanwhile, demand from the international market has remained on the weak side, as Europe faces soft buying sentiment. However, during the last month of the fourth quarter, m-xylene prices dropped due to sluggish inquiries from the domestic and overseas markets. In addition, feedstock mixed xylene prices dropped which negatively impact the prices of m-xylene. Besides, domestic production costs remained stagnant amid stable energy prices.
Asia- Pacific
m-xylene prices have continued to decline in China domestic market throughout the fourth quarter of 2022 due to inadequate cost pressure and sluggish domestic demand. Feedstock mixed xylene prices dropped throughout the quarter, easing the overall cost of production. Meanwhile, demand dynamics remained under pressure due to frequent lockdown in the country amid Covid. The performance of the downstream industry has been underwhelming, and the volume offtakes remained bearish, while the sufficient inventory level, weighed down the prices of m-xylene in the Chinese market. Although, in India, m-xylene prices showed minor fluctuation. During the first half of Q4, m-xylene prices showed stability due to the steady demand dynamics and sufficient inventory level in the domestic market. During the second half of Q4, the m-xylene price dropped due to the low imported material availability in the domestic market, which resulted in the price drop of m-xylene.
Europe
m-xylene prices have shown an oscillating trend in the European market during the fourth quarter of 2022. During October, m-Xylene prices decreased owing to the continual weak cost support, stability in energy prices, and cheaper Asian imports. Meanwhile, natural gas prices have shown a marginal change as the prices as the winter season moves toward their peak. Moreover, demand from downstream derivatives and other competitive industries has been subdued amid soft buying sentiment in the regional market. However, prices have gained upward momentum during November supported by the high production cost amid mounting Natural gas prices. Although, the speculation of recession across the European market has stifled the demand from the end-user isophthalic acid and other competitive industries. However, during November energy prices has started to stable, leading to the stable production cost of m-xylene in the regional market. In addition, a sharp decline in freight rates resulted in cheap imported material availability. Overall, weak demand and ample inventory level weighed down the prices of m-xylene in the regional market.
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.
