For the Quarter Ending March 2023
North America
Prices of o-xylene have witnessed fluctuation in the USA market during the first quarter of 2023. During the initial of Q1, o-xylene prices have witnessed stagnancy with a marginal increment of 0.4%, backed by the stable demand from the downstream phthalic anhydride industry in the domestic and overseas market while the sufficient inventories to cater to overall demand. Although, during mid and final of Q1, O-xylene prices have gained downward momentum in the USA market backed by weak consumer sentiments. Operating rates have remained weak amid stagnant consumption from the downstream industries. In addition, o-xylene demand has been steady, and there were limited occurrences of new orders inquired by the end-users, which resulted in bearish pricing sentiment in the domestic market. The sluggishness in the market can also be observed in the below-par performance of the manufacturing industry in the US market. Therefore, prices of o-xylene FOB Texas were settled at USD 931/MT with a month-on-month decrement of 1.9% during March 2023.
Asia-Pacific
o-xylene prices have witnessed mixed sentiments in China during the first quarter of 2023. During the initial of Q1, o-xylene prices decreased in the Chinese market due to weak buying trends among the end-users. Demand from the downstream phthalic anhydride industry has remained on the weaker side, which further weighed down the prices of o-xylene in the domestic market while sufficient inventories to cater to overall demand. However, during the mid and final of Q1 O-Xylene prices increased considerably since the conclusion of the Lunar New Year holidays as demand from the downstream Phthalic anhydride industries has raised. In addition, imports from exporting countries like South Korea faced difficulty as China ports were congested with an average waiting time is 0 to 24 hours. Port intermittent port closure and congestion due to strong winds and dense fog. Which limited the material available in the domestic market. As a result, prices of o-xylene CFR Qingdao were settled at USD 1162/MT during March 2023.
Europe
Prices of o-xylene have witnessed stability in the European market throughout the first quarter of 2023, backed by stable buying sentiments among the end-users. Demand from the downstream phthalic anhydride industry has remained stagnant in the regional market. Market participants reported limited instances of new orders. In addition, cheap imports offered from Asian and other exporting countries have remained steady, which resulted in stable inventories in the regional market. On the other side, Europe's PMI dipped below 50(i.e.,47.3), signifying a contraction in manufacturing and industrial activity. Thus, prices of o-xylene CFR Hamburg were assessed at USD 1506/MT during March 2023.
For the Quarter Ending December 2022
North America
Prices of o-Xylene showed fluctuation in the USA market during the fourth quarter of 2022. During the first half of the fourth quarter, o-Xylene prices increased. Volatility in the energy prices and high inflation rate contributed to the high price of o-Xylene in the regional market. Feedstock Mixed xylene prices increased, resulting in the high production cost of the o-xylene. Demand from the downstream Phthalic anhydride and other competitive industries has been stable to firm in the domestic market. Meanwhile, demand from the overseas market has remained on the weak side, as Europe faces soft buying sentiment. However, during the second half (H2) of the fourth quarter, o-xylene prices declined due to inactive inquiries from both the domestic and overseas markets. The domestic production costs remained stagnant amid stable energy prices in the region. Meanwhile, a sufficient inventory level is available to cater to the overall demand.
Asia- Pacific
o-Xylene prices have continued their bearish rally in China throughout the fourth quarter of 2022 due to the weak 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 owing to the frequent lockdown in the country due to Covid. The performance of the downstream phthalic anhydride industry has been underwhelming, and the volume of offtakes remained muted, while the sufficient inventory level weighed down the prices of o-Xylene in the Chinese market. In addition, a sharp decline in freight charges improved the import availability in the Chinese market.
Europe
o-Xylene prices have witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the initial of Q4, o-Xylene prices have shown an upward trend backed by a limited inventory level. The domestic cost of production has increased due to the soaring natural gas and operating cost, resulting in weak output rates. Furthermore, the speculation of recession across Europe has dampened the demand from the downstream derivative Phthalic anhydride and other competitive industries. Furthermore, due to the steady demand and supply dynamics, o-Xylene prices showed stability in the mid of Q4. However, during the final of Q4, o-xylene prices plunged by 2.8% due to the weak cost support from the feedstock Mixed Xylene. Meanwhile, steady inflows of cheap imports from exporting countries like Asia weighed down the prices of o-Xylene in the regional market. In addition, weak demand and sufficient inventory levels have led to a price drop in the regional market.
For the Quarter Ending September 2022
North America
O-xylene prices fluctuated during the second to last quarter of 2022. Prices for o-xylene fell in July and August before rising in September. Prices for o-xylene reflected changes in crude oil prices. Crude oil prices stabilized in September after continually falling until August from their record highs in Q3 prices. This was due to OPEC's announcement of volume cutbacks. Weak production costs were a result of sluggish cost pressure. As the market's demand for polyethylene terephthalate remained strong, the demand for downstream products like phthalic anhydride and 0-xylene has remained consistent. O-xylene prices were estimated at USD 1076 per MT for FOB Louisiana as of September.
Asia Pacific
After an initial optimistic bounce, the price of o-xylene in the Asia Pacific market fell steadily throughout the third quarter. As upstream cost pressure in the Chinese market subsided, the August drop in crude oil prices is good news for consumers. Despite large domestic market inventories, manufacturers reported steady production rates, which led to solid supply fundamentals. While consumer demand in the Chinese market fluctuated due to covid-related restrictions, demand for downstream paraxylene remained consistent. O-xylene costs were therefore estimated at USD 1205 per MT FOB Shanghai as of September 2022.
Europe
Since naphtha prices declined throughout the quarter after reaching record highs in Q3, O-xylene prices fell precipitously in the European nations. As the European countries struggled with the unpredictability of natural gas availability and the sharp spike in LNG costs, the cost of production remained stable in the region despite a decline in feedstock prices. However, more material was available due to cheaper imports from the Americas and Asia, which reduced the cost of the material on the European market. While this was going on, the market for polyethylene terephthalate continued to see stable to firm consumption rates despite cheaper imports from the Asia Pacific region. Toward the end of the quarter, the prices for o-xylene were assessed at around USD 1444/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
The US market for o-Xylene had a steady increase in the second quarter of 2022. The price of o-Xylene also increased, mirroring the trend in upstream Crude price. The restricted supply of upstream crude after the sanctions on Russian crude import resulted in scarce availability of the product. The increase in demand from the manufacturers of downstream Phthalic Anhydride is another reason driving up the price of o-Xylene. The Federal Reserve's interest rate increase also inflated the o-Xylene market. Additionally, the domestic market's substantial stocks and robust buying activity have propelled the o-Xylene pricing. Besides, the increasing freight charges have also triggered market sentiments.
APAC
The cost of o-Xylene had an erratic price pattern throughout the second quarter of 2022. The market was shut down in April as a result of the COVID revival, which originally resulted in a decrease in pricing. Furthermore, the lockdown restrictions and poor buying sentiments in the local market resulted in the piling up of goods. After the May Day holidays, the lockdown restrictions eased, and strong inquiries from the automotive and construction sectors have boosted the demand for o-Xylene. Moreover, the domestic market regained vigor, and trade flow was good. The cost of o-Xylene has grown due to the rising demand from downstream Phthalic Anhydride manufacturers due to its increased use in the production of polyester resins.
Europe
The European region's o-Xylene market grew in the second quarter of 2022. Costs were driven up by the limited supply of raw materials brought on by the ban on importing Russian oil. The Russian invasion over Ukraine raised upstream crude prices, which in turn raised o-Xylene prices. Also, the hefty freight expenses brought on by the rising gasoline prices compelled the traders to modify their offers. The growing demand from the local and regional markets and its application in the production of pesticides, paint, and other downstream products like plastics and coatings, inflated the o-Xylene prices. Besides, the export charges are at their peak, adding fuel to the scenario mentioned above.
For the Quarter Ending March 2022
North America
Prices of O-Xylene witnessed a mixed trend in the first quarter of 2022. Initially in January and February O-Xylene prices dropped due to the muted demand from the downstream Phthalic Anhydride. Hence, the FOB prices for O-Xylene in USA were witnessed to be USD 950 per MT in February. Later in the beginning of March O-Xylene market observed rise due to the skyrocketing upstream crude prices due to Russia-Ukraine war. Moreover, US sanctions imposed on Russia disrupted the regional market and resulted in price hike. O-Xylene prices in the USA fluctuated by USD 150/MT in Q1.
Asia Pacific
During the first quarter 2022, prices of O-Xylene witnessed an upward trajectory owing to soaring upstream crude prices. Besides, the rise in demand from the international market also fuelled the price of O-Xylene. However, O-Xylene is widely used in the paints, varnishes, wax, adhesives which resulted in the spike in demand from end use industries such as rubber, printing, and leather. In addition, the disruption in trade caused by the container shortage inflicted the O-Xylene values. Thus, the prices of O-Xylene in India settled at USD 1346 per MT for Ex-Vadodara in March.
Europe
O-Xylene prices showcased mixed sentiments during the first quarter of 2022. Initially prices fell due to the rise in crude values owing to the Russia’s invasion over Ukraine. Russia is the second largest crude oil producer to the world and sanctions imposed on Russia have disrupted the entire region. However, the skyrocketing upstream crude prices have affected its derivatives and laid the foundation for the change in O-xylene market trend. Moreover, rise in the demand from the downstream paint, rubber, dyes and so on has also triggered the O-Xylene values to grow. Henceforth, the CFR Hamburg prices for O-Xylene in Germany were assessed at USD 1250 per MT in March.
For the Quarter Ending December 2021
North America
o-Xylene prices showcased mixed emotions in the US market during the fourth quarter of 2021. In November, o-Xylene market sentiments remained high backed by the firm demand from the downstream Phthalic anhydride manufacturers that led to a marginal rise in its value. Thus, o-Xylene FOB Texas prices settled at USD 1035/MT in November. However, in December o-Xylene offers marginally dwindled down to USD 1010/MT backed by the lull trade activities and lower buying momentum due to year end. Moreover, snapping Crude oil values and reduction in the freight charges in December also supported the decline in o-Xylene prices in December. In the quarter, it is anticipated that o-Xylene fundamentals will take leap on the back of strong demand and volatility in crude futures.
Asia
In Asian markets, o-Xylene prices had registered an upward trend during the fourth quarter of 2021 backed by the sturdy demand from the downstream industries including Resins, Paints and Coatings, Agrochemicals etc. Moreover, stable prices of raw material Benzene also aided pricing trend of o-Xylene. In India, o-Xylene market sentiments remained bullish in effect of the firm enquiries from downstream manufacturers. Despite of the ample inventories a modest rise in o-Xylene prices was seen due to high demand from domestic and overseas market. hence, o-Xylene Ex-Vadodara prices assessed at USD 1105.45/MT.
Europe
o-Xylene prices rose substantially across the European region during the fourth quarter of 2021. Firm values of feedstock Benzene owing to the volatile upstream crude oil fundamentals supported the prices of o-Xylene in this timeframe. Additionally, o-Xylene price rise was also triggered by the sturdy demand from the downstream Phthalic Anhydride manufacturers and excessive freight charges. Hence, CFR Hamburg o-Xylene prices were assessed at USD 1090/MT in December showcasing a hike of around 10-11% since October.
For the Quarter Ending September 2021
North America
In North America, o-Xylene market outlook witnessed progress during Q3 as industries improved their production rates to cope up with the robust demand from downstream Phthalic Anhydride manufacturers. o- Xylene values in North America emulated the markets of Asia and Europe where o-Xylene after months of stagnancy shifted balance. In the mid of the quarter, o-Xylene prices witnessed a marginal rise because of the disruption in the manufacturing process caused by arrival of Ida hurricane. Moreover, the volatility in the feedstock Mixed Xylene values also sent ripples to the prices of o-Xylene. FOB-Texas o-Xylene monthly average prices assessed at USD 960/MT in September.
Asia
During the third quarter of 2021, o-Xylene market outlook in Asia witnessed an improvement after prolonged stagnancy for several weeks. Moreover, manufacturers observed gradual improvement in queries from the downstream sectors in regional market. In India, o-Xylene market showcased mixed sentiments as in the beginning of the quarter a decline in the prices of o-Xylene was noted because of the ample supplies and weaker demand. However, later in September an unprecedented surge in the values of o-Xylene was seen backed by the lower imports from China due to the congestion on several ports and high freight charges. In India, Ex-Vadodara o-Xylene monthly average prices settled at USD 959/MT in September.
Europe
In Q3 2021, European market witnessed an uptrend in the prices of o-Xylene throughout the quarter backed by the surging demand from downstream Phthalic Anhydride segment. In addition, factors such as improved industrial infrastructure along with recovering European economies increased the consumption of plasticizers that consequently bolstered the demand for o-Xylene. Besides, lower imports from China and high freight charges across the Europe-US and Europe-Asia interoceanic trade routes also supported the surge in its values. FR Hamburg o-Xylene prices settled at USD 1125/MT in September.
For the Quarter Ending June 2021
North America
Due to the resumption of around 83% of total Mixed Xylene (MX) capacity in the USA Gulf coast, the supply of o-Xylene (OX) improved in the second quarter, although it remained fairly tight. The supply outlook improved comparably to the previous quarter as the regional infrastructure restored and the operating efficiency increased in the North American region. Demand was stagnant as offtakes were stable from the downstream Phthalic Anhydride manufacturers, resulting in healthy consumption volumes. Although, the demand tapered off late in the quarter as a downstream Phthalic Anhydride plant went offline due to planned maintenance. Price of o-xylene remained on an uptrend with FOB contract price for Texas settling at USD 920 per MT.
Asia Pacific
O-xylene supply in the Asia Pacific region was strong to meet rising demand from the downstream industries. However, the production margins were subdued amidst the May Day holidays in China. The ending of turnarounds in the upstream MX facilities in Japan improved the market outlook in Northeast Asia. Regional pricing trends varied considerably in China and rest of Asia as the Chinese authorities imposed the consumption taxes on heavy aromatic commodities. Imposition resulted in the price hike for o-xylene along with the cost support from other upstream commodities. In India, the pricing trend showed a gradual improvement but maintained a downtrend throughout the quarter with Ex-Works Vadodara offers hovering around USD 845 per tonne in June.
Europe
The supply of o-xylene (OX) in the European region was tight for a larger part of the quarter, although it improved towards the end of Q2. Supply fundamentals were tight as the o-xylene was limited in availability and demand for the material remained strong during April and May, following the Q1 trend. However, demand from downstream Phthalic anhydride deteriorated as quarter met its conclusion. Reduced demand also presented the opportunity for supply fundamentals to improve. Overall, the consumption levels remain healthy for OX in Q2.
For the Quarter Ending March 2021
North America
For almost half of the first quarter, supply of almost all xylenes remained battered by the production outages caused due to the winter storm Uri that hit the US Gulf coast in mid-February. In the last week of February, Flint Hills Resources was prepared to restart its two OX plants located in Texas. Downstream demand from Phthalic Anhydride producers remained high despite many observing an abrupt spike in OX backed by sharp crude oil gains. With persistent production and logistic constraints, several downstream producers feared constrained availability of OX at least till March.
Asia-Pacific (APAC)
Ortho-xylene supplies in the region were tight during the first quarter of 2021, due to limited availability of the imported cargoes from the western regions. Prices gained support from buoyant demand from the downstream phthalic anhydride (PA) producers in China. Due to tight regional availability, Sinopec raised domestic prices of OX in the first week of February. OX offers were hovering around $660-$670/mt in mid-February with buyers grappling to balance out the regional demand-supply mismatch.
Europe
The European o-Xylene market witnessed mixed results in Q1 2021, as the supplies were balanced to tight in the region. Supply constraints were caused by hindered transportation and low operating rates of the plants in northwest European region due to cold weather throughout February and starting of March. Demand was balanced from the downstream PA sector. Higher demand and limited imports increased the spot OX prices, triggering sharp upticks in the regional offers.
For the Quarter Ending September 2020
North America
Demand for o-Xylene remained muted with series of shutdowns implemented in downstream plants under fears of Hurricane Laura. With construction industry witnessing gradual recovery as people increased home renovation activities amidst the home quarantine period, it kept the fundamentals of o-Xylene balanced till the end of the quarter. Moreover, sustained demand from the region’s paint and coating industry assisted in lifting the market prospects of o-Xylene in the current quarter.
Asia
Production rates of o-Xylene were lower in comparison to the previous quarter due to the waning production margins for aromatics. Since the arbitrage economic window was disrupted in the month of September, it hindered the supply of deep seas cargoes. However, strong fundamentals of the downstream products due to revival in the market sentiments of automotive and construction industry kept the demand for o-Xylene steady in the region. Analysts anticipate the demand to improve further in Southeast Asia with restocking activity ahead of the festive season in India.
Europe
Demand for feedstock o-Xylene in the European market remained dull in July but gradually improved till the end of quarter on improvement in offtakes from the automotive industry. The excess inventories of the product which panicked producers during the start of quarter could be seen gradually emptying towards the end. The sentiments were further supported by optimum operating rates at the downstream manufacturing units that helped in catering to sufficient supply. However, spot buying activities remained dull as influential buyers relied on contract volumes.
