For the Quarter Ending June 2025
Asia-Pacific (China)
• The Nitro-o-Xylene Price Index in China exhibited a consistent downward trajectory throughout Q2 2025, declining cumulatively by over 7% across the quarter, settling at around USD 2810/MT during June 2025
• This price decline was largely driven by suppressed demand from the construction and real estate sectors, which traditionally absorb large volumes of Nitro-o-Xylene via paints and coatings. Additionally, ample product availability and weakened global offtake placed downward pressure on the Nitro-o-Xylene Spot Price.
• In July 2025, the Nitro-o-Xylene Price Index continued its descent due to elevated domestic inventories, reduced demand from decorative and industrial coatings, and tepid export inquiries.
• Despite a marginal recovery in government-backed infrastructure activity, the sluggish real estate market curtailed coatings demand significantly. Consequently, the price decreased further as sellers looked to clear excess stock.
• The Nitro-o-Xylene Production Cost Trend reflected marginal fluctuations in raw material prices, particularly o-Xylene and Nitric Acid, which initially declined but rose slightly in May.
• However, manufacturers struggled to pass on cost pressures to end users due to weak buyer sentiment. Factory operating rates remained steady, leading to excess production and supply-side pressure in June and July.
• The Nitro-o-Xylene Demand Outlook remains uncertain. Although the automotive sector showed robust growth—particularly in NEV (New Energy Vehicles) sales—demand for auto coatings wasn’t sufficient to offset the drop in architectural coatings demand.
• The Construction PMI remained above 50, supported by public infrastructure projects, but declining property transactions and housing starts hindered broader consumption of Nitro-o-Xylene. Export demand, especially from Southeast Asia, also remained subdued.
Europe
• In the European region, the Nitro-o-Xylene Price Index fluctuated due to mixed economic signals, seasonal construction variations, and macroeconomic pressures, including tighter monetary policy.
• While demand from automotive coatings was stable, construction and decorative coatings showed signs of weakening, particularly in countries facing housing market stagnation.
• The Price Index in Europe showed moderate fluctuations in July 2025. Softened demand from the construction sector and limited feedstock cost inflation contributed to marginal price reductions across key regional hubs.
• However, temporary inventory tightening and limited import flows from Asia slightly cushioned the downward slide in some parts of the region.
• European producers maintained moderate run rates, and local output was sufficient to meet regional demand. The Nitro-o-Xylene Production Cost Trend remained relatively stable, though high energy costs in some countries led to increased cost sensitivity across buyers.
• Imports from Asia, especially China, offered a competitive alternative, pressuring local suppliers.
• The Nitro-o-Xylene Demand Outlook in Europe remains clouded by stagnant construction recovery and inflationary fatigue. The automotive sector showed some signs of rebound, but overall consumption of Nitro-o-Xylene is expected to remain cautious unless residential construction and renovation markets recover more firmly in Q3 2025.
North America
• In North America, the Nitro-o-Xylene Price Index remained volatile throughout Q2 and into July, influenced by shifting feedstock prices, variable demand across coatings sectors, and changing trade balances.
• The first half of the quarter witnessed slight increases, but July saw a moderate downturn amid rising inventories and slower-than-expected seasonal coatings demand.
• The price of Nitro-o-Xylene in North America declined in July 2025 due to soft purchasing activity from the paints and coatings industry, particularly within residential repaint and construction markets.
• A modest increase in industrial coating demand partially offset the decline, but not enough to halt the downward trajectory of the Spot Price.
• The Nitro-o-Xylene Production Cost Trend in the region reflected mild fluctuations in raw material inputs. Stable operating rates among domestic producers, combined with incoming imports, ensured that supply remained ample. Some buyers adopted a wait-and-watch strategy, anticipating further price reductions.
• The Nitro-o-Xylene Demand Outlook in North America is mixed. While automotive refinishing and select industrial applications provided a stable base of demand, construction-related coatings consumption remained soft.
• Elevated mortgage rates and cautious consumer sentiment weighed on renovation and housing activity, impacting overall Nitro-o-Xylene consumption into Q3 2025.
For the Quarter Ending March 2025
North America
In Q1 2025, Nitro-o-Xylene prices in North America exhibited a fluctuating pattern, influenced by supply chain dynamics and sectoral demands. January saw a modest price uptick due to logistical constraints and steady demand from the pharmaceutical and specialty chemicals sectors. However, February experienced a slight dip as supply chains stabilized and raw material costs eased. March brought renewed price pressures, driven by increased transportation costs and anticipation of policy shifts.
The automotive sector's performance notably impacted Nitro-o-Xylene demand. General Motors reported strong Q1 earnings, with adjusted EPS of $2.78 and revenue of $44.02 billion, surpassing expectations. However, impending changes in U.S. auto tariffs introduced uncertainty, leading GM to reassess its full-year guidance and pause stock buybacks. These developments contributed to market volatility, affecting demand for chemical intermediates like Nitro-o-Xylene.
In the construction sector, activity remained subdued, with high interest rates and material costs dampening new projects. This stagnation limited demand growth for Nitro-o-Xylene in construction-related applications. Overall, the North American market navigated a complex interplay of sectoral performances and economic policies, leading to a dynamic pricing environment for Nitro-o-Xylene.
Asia
In the first quarter of 2025, the APAC Nitro-o-xylene market experienced divergent demand trajectories influenced by sectoral performance and policy environments. While supply chains remained generally stable, subdued activity in construction and automotive industries restrained demand growth in certain areas. Conversely, robust infrastructure investments and resilient manufacturing activity supported stronger consumption elsewhere. Market sentiment reflected cautious optimism, with inventory levels steady but demand conditions varying across the region, leading to a mixed but gradually improving outlook as the quarter progressed. In China, Nitro-o-xylene prices declined by 3.81% from Q4 2024 to Q1 2025, averaging $3321.67 USD/MT during the quarter. The intra-quarter trend was bearish, with monthly prices falling steadily due to weakening demand from construction and automotive sectors amid contracting manufacturing activity and declining car sales. Despite stable domestic supply, subdued downstream consumption and trade policy uncertainties pressured prices. The near-term outlook remains cautious, with expectations of continued price softness before potential stabilization as demand conditions evolve.
Europe
During Q1 2025, Europe's Nitro-o-Xylene market experienced price fluctuations influenced by sectoral demands and economic conditions. January witnessed price increases due to tight supply and robust demand from the pharmaceutical and specialty chemicals industries. February saw stabilization as supply chains improved, but March brought renewed price pressures from rising energy costs and feedstock availability concerns. The construction sector showed signs of recovery, with EUROFER forecasting a 1.1% growth in 2025 after years of decline. This resurgence, supported by EU funding and infrastructure projects, bolstered demand for Nitro-o-Xylene in construction-related applications. Conversely, the automotive sector faced challenges. Volvo announced significant job cuts amid declining sales and revenues, citing unprecedented industry challenges. These difficulties in the automotive industry tempered demand for Nitro-o-Xylene derivatives used in vehicle manufacturing. Overall, Europe's Nitro-o-Xylene market in Q1 2025 was shaped by a recovering construction sector and a struggling automotive industry, leading to a nuanced pricing landscape influenced by varying sectoral demands and economic factors.
For the Quarter Ending December 2024
North America
In North America, the Nitro-o-Xylene market in Q4 2024 exhibited a steady and moderately bullish price trend, underpinned by stable demand from key downstream sectors, particularly the pharmaceutical and specialty chemicals industries.
During October, prices saw slight increases due to supply constraints and steady demand from the chemical processing sector, where Nitro-o-Xylene is used in manufacturing intermediates to produce various chemicals and pharmaceuticals. The supply side remained somewhat limited due to logistical challenges and fluctuating raw material prices, which put pressure on producers to maintain stable output levels. Although demand from sectors such as agriculture and dyes remained robust, overall consumer demand was moderate, as the region navigated a cooling economy.
The automotive and electronics sectors, which typically show some demand for Nitro-o-Xylene derivatives, showed mixed performance due to the ongoing global supply chain issues and economic uncertainties. By November and December, prices stabilized due to adequate supply levels but cost pressures from upstream chemicals and transportation remained a key concern. The market was also influenced by cautious optimism in export markets, particularly with demand from neighbouring regions like Mexico.
APAC
The Nitro-o-Xylene market in the APAC region displayed a mixed but predominantly bullish price trend in Q4 2024, driven by robust downstream demand and constrained supply conditions. In October, prices surged in China, fueled by strong demand from the pharmaceutical and specialty chemical sectors, alongside tight supply dynamics. Investments in the pharmaceutical industry, including expansions by global player like Bayer, supported increased utilization of Nitro-o-Xylene for chemical intermediates, pushing prices higher. Government policies aimed at fostering innovation and streamlining approval processes further incentivized production and demand in high-value applications. However, supply-side challenges persisted, with constrained production capacities and logistical bottlenecks exacerbating the tight market. By November, while the broader chemical market faced global economic uncertainties and export challenges, Nitro-o-Xylene maintained its upward trajectory, benefiting from robust demand in dye and agrochemical applications. Export activity to key markets such as India and Southeast Asia remained resilient, particularly for dyes and agricultural inputs, sustaining momentum despite geopolitical headwinds. December saw stable to slightly elevated pricing as supply constraints persisted amidst steady downstream demand. The dye and agrochemical sectors, driven by seasonal production peaks, played a critical role in sustaining market growth.
Europe
In Europe, Nitro-o-Xylene prices saw a somewhat bullish trajectory throughout Q4 2024, supported by resilient demand from downstream industries and tighter supply conditions. October marked an uptick in prices as manufacturers continued to face supply chain disruptions and higher production costs. The pharmaceutical sector, particularly in Germany and the UK, remained a strong driver for Nitro-o-Xylene demand, with increased use in the production of specialty chemicals and intermediates. The agricultural and automotive industries also provided steady demand, though the overall macroeconomic climate showed signs of slowing, especially with weaker industrial production growth and ongoing inflationary pressures. As the quarter progressed into November and December, prices continued to trend upwards due to supply-side constraints and seasonal increases in demand from industries such as dyes and agrochemicals. European exports also saw growth, particularly to Eastern Europe and parts of the Middle East, which helped maintain market stability despite global uncertainties. However, the rising cost of raw materials, driven by energy price fluctuations and the tightening of feedstock availability, continued to exert upward pressure on Nitro-o-Xylene prices.
Frequently Asked Questions (FAQs)
1. What is the current price of Nitro-o-Xylene?
As of July 2025, the Nitro-o-Xylene Spot Price in China declined to around USD 2810/MT (FOB Shanghai), marking a cumulative drop of over 7% across Q2.
2. How is the current market situation of Nitro-o-Xylene in the global market?
Globally, the Nitro-o-Xylene market is witnessing a bearish sentiment due to oversupply, sluggish demand from construction coatings, and high inventories. Only limited support is seen from the automotive coatings segment.
3. What is driving the Nitro-o-Xylene Production Cost Trend?
The production cost trend is influenced by raw material prices (Nitric Acid and o-Xylene), freight stability, and energy input costs. In Asia, feedstock volatility has had a muted impact due to weak downstream demand.
4. What is the Nitro-o-Xylene Demand Outlook for the coming months?
The demand outlook remains subdued, particularly in construction-heavy segments. A recovery could be anticipated if infrastructure stimulus programs and real estate reforms take effect in China and if housing markets stabilize in Europe and North America.
