For the Quarter Ending March 2024
North America
In Q1 2024, Paraxylene market in North America saw positive market sentiments fuelled by the ongoing global economic recovery and increasing demand from both domestic and international markets. Nevertheless, when compared with the previous quarter, the prices still remain on the lower end. However, the market faced challenges stemming from fluctuating prices of raw materials, particularly influenced by volatile crude oil prices.
Moreover, moderate Paraxylene supply was hindered by production obstacles such as delays in input deliveries and declining supplier performance. In the United States, the cost of Paraxylene rose in the final week of March 2024, primarily due to the uptick in upstream crude oil prices within the American region. Throughout the quarter, market trends, seasonality, and correlation price percentages in the USA remained stable.
Notably, there was little disparity in price percentage comparisons between the first and second halves of the quarter. The latest recorded price for Paraxylene Delivered (DEL) at Houston in the USA for the current quarter stands at USD 1016 per metric ton. These disruptions likely exerted additional pressure on prices. Nevertheless, despite these challenges, the North American Paraxylene market showcased stability during the quarter, driven by a confluence of factors influencing pricing dynamics.
APAC
During the first quarter of 2024, the Paraxylene market in the APAC region experienced a positive trend, with prices showing a slight increase. In Jan 2024, upward movement can be attributed to various factors, including a rebound in demand from downstream industries such as packaging and FMCG, as well as stronger buying activity from key export markets like China, Europe, and North America. Additionally, the supply of products remained ample, and delivery times improved due to the increased demand. Among the countries in the APAC region, Japan, a major player in the market, also witnessed a recovery, with prices showing a moderate increase compared to the same period last year. The analysis of Japan's Paraxylene market during this quarter revealed a positive correlation between market demand and prices, indicating a direct relationship. Moreover, prices showed a 2% increase compared to the previous quarter, with a 1% increase during the second half of the quarter compared to the first half. Nevertheless, towards the end of the quarter, Paraxylene supply remained abundant, allowing merchants to easily meet new orders. Across most Asian markets, weak demand and high costs persist amid geopolitical uncertainties with slow market offtakes.
Europe
In the first quarter of 2024, the European Paraxylene market exhibited signs of growth, driven by increased demand from downstream sectors. This heightened demand continued to put pressure on delivery schedules, leading to extended timelines for product fulfilment. However, despite these challenges, the market maintained high prices due to low availability of Paraxylene. The ongoing Red Sea crisis and disruptions in the supply chain further complicated industry dynamics. Delays in raw material deliveries and rising purchasing costs adversely impacted production capabilities, contributing to subdued demand conditions. Notably, Germany saw a modest uptick of 1.2% in its Paraxylene market, thanks to a balanced supply and a stable market environment. Rise in crude oil prices and the tight supply of upstream raw materials from overseas exerted upward pressure on the final price of Paraxylene. Additionally, the industry faced challenges such as plant shutdowns and disruptions, which further influenced market dynamics. Despite these obstacles, prices for Paraxylene saw an increase, with the latest price for Paraxylene Free Delivered (FD) Hamburg in Germany standing at USD 1155 per metric ton for the first quarter of 2024. Overall, the European Paraxylene market witnessed higher trades amidst supply chain disruptions and strong demand, resulting in rise in the price trend.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 saw a bearish market for Paraxylene in the North America region. Paraxylene supply was at a moderate to high level, leading to declining prices due to reduced demand from downstream industries like PET Bottle and PTA. In October, the product's demand remained bearish, influenced by the decrease in crude oil prices in the US region. The inventories were more than sufficient to meet domestic demand throughout October and November.
Simultaneously, the manufacturing sector in the United States underwent a deeper contraction in December, with the decline in new orders playing a significant role in the broader contraction. Many companies cited weak client demand, attributing it to reduced purchasing power among customers and increased global economic uncertainty. Externally, demand conditions also weakened, with new export orders contracting, albeit at a fractional pace of decline.
Supplies of inventories were reported to be more than adequate due to decreasing prices of feedstock Naphtha and declining prices of upstream Crude Oil, which contributed to easing production costs.
APAC
During the fourth quarter of 2023, the Paraxylene market in the APAC region witnessed a bearish trend, primarily influenced by the uncertain naphtha prices in the Asia market. The downstream market remained largely stable with moderate supply and demand, but market sentiment varied with bullish trends in some regions and bearish trends in others. The key factor impacting the overall performance of the Japanese Paraxylene market in the fourth quarter was a sustained decline in new orders. This decline was attributed to both domestic economic weaknesses and, particularly in the case of exports, slower demand from overseas. Despite the decrease in new orders, manufacturers showed resilience by increasing employment levels and expanding purchasing activities, suggesting preparations for increased output in the coming year, possibly driven by optimistic expectations for improved economic conditions. In China, the operating rate of Paraxylene was moderate, ensuring ample supply to meet domestic demand. Additionally, enterprises did not experience significant pressure on their inventories during this period. The price of the Paraxylene increased only marginal by 0.8% compared to the previous quarter.
Europe
In the fourth quarter of 2023, the European Paraxylene market faced weak demand primarily due to a decrease in demand from downstream bottling and packaging industries. The market was further impacted by low-cost import offers from the Asian market, alongside sluggish market conditions and declining raw material crude oil prices. The drop in paraxylene prices was mainly attributed to weak feedstock prices and subdued downstream demand. The decline in crude oil prices was linked to eased supply concerns, particularly following a notable increase in US commercial crude stockpiles. In the Eurozone, manufacturers once again reduced workforce numbers in December as they adjusted to lower capacity utilization. The surplus availability of the product in the market, combined with reduced demand from downstream sectors, contributed to the extension of delivery schedules. The decline in new work from abroad was slower, mainly attributed to subdued demand across European markets. The cost of Paraxylene was settled at USD 1081/MT on an FD Geel (Belgium) basis during the year ending.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, the price for Paraxylene increased in the North American region, driven by increased purchasing activity from downstream industries and constrained product availability. Manufacturers witnessed significant demand for Paraxylene, mainly originating from the packaging and polyester sectors. The industry also benefited from higher upstream prices, fueled by a rise in Naphtha prices throughout the quarter. In the US market, businesses indicated further expansion in business activities in July, primarily propelled by growth in the service sector. However, production and supply in the US market experienced some disruption due to tight labor market conditions as a potential strike at United Parcel Service (UPS) had the capacity to bring about significant disturbances to the economy. However, UPS and the Teamsters declared that they had agreed on a new contract. At the same time, the increasing Consumer Price Index towards the end of the quarter propelled the commodity prices, amid the hike in demand for Paraxylene from the Polyester industries.
APAC
The Paraxylene market in South Korea experienced a robust incline in its procurement activities from downstream sectors. Manufacturers witnessed improvement in Paraxylene demand from packaging as well as Polyester industries. The cost pressure had also elevated, driven by an upsurge in Naphtha prices during the same timeframe. However, supply-related challenges emerged due to the typhoons, which disrupted the supply in the region. These difficulties were exacerbated by low inventory levels and reduced supply during the period. Consequently, the Paraxylene market experienced a surge in prices amid overall enhancement in market sentiment. Furthermore, South Korea's Consumer Price Index (CPI) for July 2023 stood high, reflecting a 0.1% increase from June 2023, as reported by the Korea Statistical Information Service. In addition to these factors, Hyundai Cosmo Petrochemical, which operates a Paraxylene unit in Seosan, South Korea, with a production capacity of 346,000 metric tons per year, had scheduled a maintenance turnaround starting from mid-August 2023. While South Korean GS Caltex planned to shut down production at its No. 2 paraxylene line in Yeosu, South Korea, at the end of August to carry out planned preventive measures. Maintenance on this line with a capacity of 400 thousand tons of Paraxylene per year lasted for one month.
Europe
During the first half of Q3, the market for Paraxylene reversed its angle as comparison to the Asian and US market. During the first half of the quarter, the price for MEG declined in the European market. At the onset of August 2023, the Paraxylene market in European market witnessed a notable upswing driven by a tight supply, rising demand, declining inventories. In terms of the upstream market, the rise in Naphtha prices played a role in supporting the Paraxylene market, which serves as the fundamental material for PET production and Polyester. Moving in the downstream industries, the demand for polyester remained robust, leading to enhancements in domestic demand even in the presence of relatively limited inventory levels. Moreover, according to the Federal Statistical Office (Destatis), the annual inflation rate for the Euro area in July 2023 was reported at 5.3%, showing a slight decrease from the 5.5% recorded in June 2023. This data points to a decline in the inflation rate compared to the previous month. Additionally, the Consumer Price Index (CPI) in the Euro Area rose to 124.03 points in September, up from 123.36 points in August 2023, according to Eurostat.
For the Quarter Ending June 2023
North America
At the beginning of the second quarter, the prices of Paraxylene witnessed a marginal increment owing to the limited availability of material, even though consistency in supply was maintained. However, demand was recorded to be at moderate to high levels because of recovering downstream industries. In the middle of the second quarter, the Paraxylene market experienced a bearish trend as high inventories and weak demand from PTA and PET Bottle sectors weighed on the market. However, demand was sluggish from downstream PTA industries, along with bleak sales of PET bottles which were anticipated to increase. Towards the end of the second Quarter, the North American market was dealing with an oversupplied market due to a halt in the export of Paraxylene, as the downstream demand of PET and PTA industries did not rebound due to fear of the US Economy entering recession. Overall, the market situation was mixed but largely bearish as prices of Paraxylene saw depreciation for the most part of the second quarter. Additionally, manufacturing activity fell in the region due to the sluggish purchasing activity amid high-interest rates and inflation, the data by FRED also indicated that the Production Price Index in the US market dropped to 245.83 in June 2023. As a result, the price of Paraxylene was assessed to be USD 1030/MT FOB Texas.
APAC
At the beginning of the second quarter, paraxylene prices experienced a marginal increase in the Asian market due to limited supply, which kept prices largely stable, although a small increase was observed. The market experienced a slight upward trend due to plant shutdowns for routine maintenance and increased operating costs in the downstream PTA and PET bottling industries. Plant shutdowns had a dramatic impact on supply. For example, the shutdown of GS Unit Number 3 and GS Caltex Corporation for routine maintenance until early May impacted the market by 70%. Supply improved as improvements were made in the supply chain, but frequent plant shutdowns led to an overall increase in the market price. At the end of the second quarter, the market situation was bearish as the end-use packaging industry experienced sluggish demand amid volatility in the crude oil market. According to data from Statistics Korea, the consumer price index remained unchanged at 111.12 in June 2023 as sluggish global demand weighed on the market. Furthermore, consumers reduced their spending, while companies reduced their selling pressure or kept it mostly stable to stimulate sales in the region. Finally, Paraxylene prices were recorded at USD 940/MT FOB Busan.
Europe
The European market witnessed a bullish trend for Paraxylene due to supply constraints and production cutbacks amidst the recovering downstream industries of PTA and PET bottling. However, the market situation turned bearish in the middle of Q2 due to the depressing outlook on the global economy, fears of a collapse of the US banking system, and the Fed raising interest rates. The situation remained bearish until the end of Q2 as crude oil and naphtha prices fell, further depressing paraxylene prices. Supply remained at optimal levels as plants were running at full capacity, but demand from the PTA and PET bottling industries was low despite expectations of increased sales of PET bottles during the peak summer season. Meanwhile, European monthly producer prices fell by 0.9% in May, highlighting the challenges faced by the economy in reviving demand and restoring economic growth. In addition, annual inflation was expected to be 5.5% in June, down from 6.1% in May, according to Eurostat, the European Union's statistical office. As a result, the price of Paraxylene was recorded at 1105/MT CFR Immingham during June 2023.
For the Quarter Ending March 2023
North America
The price of Paraxylene in the USA went down in the first month of the quarter but remained stable, with a slight increase in the following two months. This was caused by a decrease in demand from downstream sectors such as PET Bottles and polyester industries due to the economic slowdown in the USA, which resulted in a bearish market sentiment. However, the market sentiment improved in the later part of the quarter due to an increase in production activity and demand from downstream industries, as well as seasonal orders from end-use beverages and bottles. The crude oil market also remained volatile during this period. Consequently, the price of Paraxylene settled at USD 1094/MT FOB Texas by the end of the quarter.
APAC
After the spring festival, Asian Paraxylene prices experienced an upward trend as demand from downstream sectors in China picked up. The South China Paraxylene facility was operating at peak efficiency. The supply of goods was sufficient on-site, and the delivery was efficient. However, the operating rate of Paraxylene plants in Asia had recently declined, and the overall operating rate of these plants was less than 60%. There was a tight supply of material due to the closure of some plants, such as Dongying Weilian, PetroChina Liaoyang Petrochemical, and PetroChina Urumqi Petrochemical, which had shut down for repairs. Despite this, there has been steady growth in demand from the PET bottles sector due to the seasonal demand for beverages. The supply and demand dynamics, production activity, and market sentiment were some of the factors influencing the price of Paraxylene.
Europe
The price trend for Paraxylene in Europe mirrored that of the American market, with prices falling in the first month, followed by a rise in the latter two months due to an increase in demand from downstream sectors. This rise in demand from sectors such as polyester likely contributed to the increase in the price of Paraxylene. Despite worker and port strikes affecting the supply of the product, sufficient production and bulk inventories supported the initial dip in prices during the first month. However, the subsequent rise in prices during the later months was due to increased demand from downstream sectors, which drove up the price of Paraxylene. In the end, the price for Paraxylene settled at USD 1246/MT FD Hamburg.
For the Quarter Ending December 2022
North America
In the North American market, Paraxylene prices declined in the fourth quarter. The market situation had been bearish as Hurricane Ian forced the market to close. The storm had an impact on demand interrupting the import and export. In the mid of the fourth quarter, the prices went up because of supply disruption amidst low availability of inventories. However, the prices again declined at the end of November as the demand was not satisfactory, and purchasing activity fell as firms reportedly worked through excess inventories. The bearish market situation continued, and the price kept falling in November because the manufacturer’s confidence shrunk, fearing inflation. The price hovered at USD 1103/MT FOB Louisiana in the last week of December.
APAC
Paraxylene prices initially in the Asia-Pacific Region were held high with an improved demand outlook in the fourth quarter. The market situation was bullish as for PTA, polyester plant operation rates rose; thus, the demand in the domestic regions also rose. However, slow demand and healthy supply sent the price of Paraxylene the other way. The support from the global polyester market was affected because of weak global spending. Weak sales in the polyester market also had an impact on the price. In the month of November, the price stood at USD 1140/MT FOB Shanghai. The demand from downstream industries was bearish because the consumer’s confidence in the end-use polyester industries was not healthy to support the upward trend. Also, due to the strict Zero-covid policy, small businesses found it challenging to keep up with their production targets in order to ensure supplies. The prices were USD 1150/MT FOB Shanghai in the first week and rolled down to USD 1015/MT FOB Shanghai reason being low demand from downstream PTA and the polyester sector. The sentiments of the downward market were not optimistic, reducing the demand for Paraxylene as well. Last week saw constrained prices. Most traders were reluctant to take positions at the end of the year.
Europe
Paraxylene saw a marginal hike in prices as demand in Europe continued to be healthy overall, with small orders coming from the downstream polyester sector. Due to slow demand and increased imports, the price decreased by 6% to USD 1358/MT FD Hamburg in the third week of October. During this week, the demand was low as manufacturers came under pressure due to decreased demand for derivatives PET and PTA. The supply exceeded the downstream consumption, which caused a flooded stockpile. In the second week of November, the price stood at USD 1389/MT FD Hamburg as the demand stabilized. The uncertainty among the manufacturing units because of rising inflation also increased the price of Paraxylene. During the fourth week of November, the price fell by 3.3%, the reasons being signs of a slowdown as demand weakened in the downstream derivative market. In December, the market supply was unbalanced. The demand for bottles and sheets in the downstream market was low; thus, PET buyers and sellers continued to cut stockpiles which constrained the spot market activity. In the last month of December, the prices again dropped by 2.7%. Few factors such as decreased demand, falling natural gas prices, and the resolution of the supply chain issue are the main reasons for the downfall of paraxylene prices in Europe.
For the Quarter Ending September 2022
North America
In the North American market, Paraxylene prices mainly dipped due to several factors like a slow economy, weak demand, recession, and rising inflation. The U.S. trade deficit in goods narrowed in Q3 amid a decline in imports, driven by slowing domestic demand as the Federal Reserve aggressively tightens monetary policy to tame inflation. The market is oversupplied in critical areas like PTA and packaging, which reduces customer interest in buying fresh materials. Given the persistently bearish demand, the Paraxylene-Naphtha Spread has undoubtedly shrunk even more as crude oil prices continue to decline compared to the previous few months. Thus, the downstream derivative market was mainly affected, and the offtakes from end-use industries declined. As a result, producers mostly held prices low, agreeing on USD 1297/MT FOB Louisiana.
APAC
Paraxylene Prices in the Asia-Pacific region declined throughout the third quarter. China's Paraxylene end-use market frequently experienced difficult market conditions. Weakness continued to be heard in the paraxylene market since the start of this quarter, falling around USD -57/MT. Stable polyester demand and low PTA operating rates kept offers for Paraxylene lower as inventory remained high. In the second half of Q3, due to typhoon "Xuan Lannuo," Paraxylene shipping and delivery were suspended, and tanker delivery speed slowed. Thus, the margin of reduction was slow, causing the price to settle at USD 1220/MT FOB Shanghai during September. In addition, On the 1st of September afternoon, Sinopec Tianjin reduced the operating rate of its 390 kt/yr Paraxylene plant and closed it for a 25-day maintenance period.
Europe
The Europe market experienced a low market throughout the third quarter of 2022. Since the Europe market was struggling with the energy crisis, consumer confidence weakened. Market sentiment has been generally bearish on the European Paraxylene, and the end use of purified terephthalic acid (PTA) market also experiences the same. Sluggish demand and sharply lower PTA plant operating rates played a role in the ensuing downturn. Since August, the week-on-week decline of the freight index on the European route has been significantly more significant than that in July. The freight index of European ways was down by 3.0%. In contrast, the low water level of the Rhine River in Germany has led to a significant reduction in the cargo capacity of ships or even suspension of sailings, weakening consumers' confidence in Paraxylene. Thus, with reduced prices, the Paraxylene market value settled at USD 1401/MT FD Hamburg.
For the Quarter Ending June 2022
North America
The paraxylene market in North America dipped in the first half of Q2, which later rose and hovered around USD 1483/MT FOB Louisiana in the month of June 2022. This explanation was based on the volatile price of crude oil, which persisted throughout the second quarter. Additionally, the market for its raw materials like Toluene, Benzene, and mixed Xylene exerted intense cost pressure, contributing to the upward price trend in the second half of Q2. The regional market's demand for the commodity was high from downstream Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) bottle industries over the period under consideration. Therefore, during the month of June, ChemAnalyst prices for Paraxylene settled at USD 1458/MT FOB Charleston.
APAC
Prices for Paraxylene in the Asia-Pacific region increased throughout the quarter in China and India, owing to the increasing price trend for its feedstock market. Crude oil prices increased after OPEC+, an alliance of the Organization of the Petroleum Exporting Countries and other producing nations, including Russia, whose output has fallen by about 1 million BPD following Western sanctions on Moscow over its invasion of Ukraine. Further, tight supply amid healthy demand from downstream Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) Bottle contributed to the soaring pricing of Paraxylene. Paraxylene feedstock such as Toluene, Ethylene, and mixed Xylene has been firm since the end of April, which continued its upward trend until June. Thus, the price of Paraxylene saw an upward rally in the Asia-Pacific region. The prices settled at USD 2097/MT Ex-Ahmedabad and USD 1307/MT FOB Shanghai, respectively, in June 2022.
Europe
In Europe, the Price for Paraxylene continued to rally upward throughout the second quarter, aided by the firmness in its feedstock prices. Climbing crude oil prices in recent weeks have made their presence felt where European Paraxylene (PX) market observe a significant rise in PX prices owing to a resurgence in ICE Brent crude oil values. In addition, volatility in crude oil affected Paraxylene production, as it requires benzene, toluene, and Xylene. Therefore, the drastic price change is due to soaring Freight charges and Port congestion, keeping the paraxylene price upward in the domestic market. From the demand side, offtakes from the Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) Bottle industries lifted the price trend in the domestic market. Thus, considering the reasons mentioned above, the price for Paraxylene rose and hovered at USD 1575/MT FOB Hamburg during June 2022.
For the Quarter Ending March 2022
North America
Paraxylene market saw marginal increment in the first half of Q1 which later rose substantially towards second half due to volatile crude oil prices. The Russia -Ukraine war and disrupted supply chain exacerbated its value. USA, being the exporter as well as the importer of Paraxylene was hit harder with the changing Naphtha price affecting the price trend of crude derivative product. From demand side, the PTA (Purified Terephthalic Acid) industry boosted with higher demands lined up from PET bottle industry. Thus, the price for Paraxylene in USA rose and settled at USD 1308 FOB Louisiana (USA).
APAC
Paraxylene price witnessed drastic increment in the H2 of Q1 2022 owing to the global rise in crude oil values amid escalating tensions in Europe. With interwoven connection between crude oil and aromatics, the change in one reflects the change in other. On demand side, the downstream purified Terephthalic Acid has also increased volume intakes as weaving factories improve rates after the holiday break in early February. Later, with seasonal change hitting Asia-Pacific region, the demand for Paraxylene gained momentum with availability of inventories. thus, the price for paraxylene stabilized in the month of March and settled at USD 1166 FOB-Shanghai.
Europe
In Europe, the price for Paraxylene climbed in the first quarter with high crude oil prices. Paraxylene prices rose significantly owing to resurgence in WTI crude oil values. Crude oil has increased to over USD 130/bbl as of March 8th, 2022, the increase in crude prices came in lieu of strong demand fundamentals and weakened supply dynamics amid tensions in West Asia in 1st half of the quarter and European crisis in H2 of Q1. The production cost also increased with rising energy prices and on demand side, downstream PTA increased offtakes as PET bottle demand climbed in the European countries. Thereby, the price for Paraxylene rose and hovered around USD 1030 FOB Hamburg (Germany).
For the Quarter Ending December 2021
North America
Q4 started on a strong note for Paraxylene in the North American region, PX market gained from increased demand of Purified Terephthalic Acid (PTA) which forms a precursor for PET bottles. PX prices in USA increased to USD 989 per MT FOB Texas in October, however demand deterioration towards H2 of the last quarter severely hampered the market sentiment and prices went downwards and slumped to USD 865 per MT in December. Drop in demand came on the back of traditional consumption deterioration in lieu of winter holiday season.
APAC
Prices observed sudden rise in October 2021 stemming from increased demand from the domestic market coupled with low output level across the market. India relied heavily on imports from China and other Far east Asian countries for the supply of Paraxylene. Paraxylene prices were assessed at INR 137770 per MT Ex-Ahmedabad. PX market sentiment declined in the H2 of Q4 and decreased to INR per Mt owing to drop in depend in the domestic market. China market observed demand influx from PTA market which strengthened upstream PX market however as the quarter moved on market sentiment weakened and PX prices fell to USD per MT in December.
Europe
Healthy PET market throughout Q4 meant that upstream PX manufacturers maintained strong margins throughout the last three months. Consequently, increased market activity resulted in robust bullish prices for Paraxylene. Prices increased from USD 925 per in October to USD 1055 per Mt in December 2021 on FOB basis. Energy feedstock costs remained strong throughout the quarter which further pushed the overall cost of production and culminated into hefty price increases for the available material.
For the Quarter Ending September 2021
North America
In the North American domestic market, the overall demand outlook remained uncertain in the third quarter of 2021. Most of the production remained shut during the first half of the quarter however some of the key ports and waterways reopened in the first week of September after the hurricane Ida made landfall in the US Gulf coast which caused huge damage and power outages in the country. The supply of Paraxylene remained healthy despite the halt in production of raw materials. Demand from downstream PTA has been strong in Q3 given the robust intake volumes from the packaging sector in the wake of economic recovery in the USA. Prices of Paraxylene were assessed at USD 940-980/MT FOB Texas during the third quarter.
Asia Pacific
The APAC Paraxylene market witnessed gradual improvement in the third quarter of 2021 on the back of an increased demand from downstream manufacturers. After witnessing consistent weekly declines in August, Paraxylene prices started escalating in the month of September. In China, Sinopec refineries cut their throughputs in September, following the ‘dual cuts’ on energy consumption and carbon emissions in some provinces, such as eastern China’s Jiangsu province. Sinopec's Jinling Petrochemicals in the province lowered its run rates by about three percentage points from August which affected the pricing of PX in the region during Q3. In India, a marginal recovery has been observed followed by the revival in industrial activities post ease in pandemic cases in the country. Ex-Mumbai price of Paraxylene was last assessed at USD 1685/MT in September.
Europe
The overall market outlook of Paraxylene was seen tight during the third quarter of 2021 in Europe. Supply fundamentals improved as imports from Asia eased after facing logistical constraints early in the quarter. A downtrend was observed in Germany as FOB Hamburg offers fell from USD 900/MT in July to USD 890/MT in September. An increase in demand was reported from the downstream PTA sector in Q3.
For the Quarter Ending June 2021
North America
In the North American domestic market, Paraxylene demand outlook was bolstered with flooding enquiries from the downstream manufacturing industries as the orders were piled up amidst the shortages occurred in the previous quarter. Intake volumes were tepid from the downstream Purified Terephthalic Acid (PTA) industries and the buyers were observed procuring volumes ahead of the upcoming hurricane season in the US to restock inventories. Supplies improved with the resumption of industrial activities in the US Gulf coast and balanced demand fundamentals stabilized the price with FOB Texas discussion in June settled at USD 996 per tonne. In Mexico, PTA plants announced force majeure in May due to local water issues which resulted in dampening demand for Paraxylene.
Asia Pacific
During the second quarter of 2021, Paraxylene supply in the Asia Pacific region was balanced, however some constraints were observed amidst the on-hold production in China during the May Day holidays. In June ending, China’s Zhenjiang Petrochemicals Paraxylene line went offline unexpectedly. Demand outlook in the Asia Pacific region declined marginally as major Chinese PTA producers reduced their offtakes and declaring turnarounds in China to overcome from the excess supply compared to demand in the regional market. In India, restricted commercial and public movement hindered the market dynamics, and regional traders were majorly focused on the overseas exports for better netbacks. Despite crumbled activities in the Paraxylene market, the pricing trend stabilized in the second half after observing steep increment in April with Ex-Works Mumbai pricing discussion in June settled at USD 1759 per tonne.
Europe
In the European region, Paraxylene supply scenario improved compared to the previous quarter owing to the weak demand sentiment in the market. Supply fundamentals shifted from tight to balance although imports from Asia faced logistical constraints. Early in the quarter, demand stayed in the uptrend as domestic downstream Purified Terephthalic Acid (PTA) production increased to compensate import shortages from Asia. However, demand decreased from H2 of Q2 as traders remarked that spot trading has been soft in the market. The pricing trend declined throughout the quarter as the FOB NWE discussion settled at USD 860 per tonne in May.
For the Quarter Ending March 2021
North America
The Paraxylene supply in the North American region remained tight during the first quarter of 2021, due to the production disruptions caused after the arctic freeze hit the US gulf region, accountable for halting the 73% of total Paraxylene capacity of the region, giving room to global supply shortages. The demand from the downstream PTA and PET sector surged, due to the unavailability of Paraxylene. PX prices hiked significantly in the North American region, where the prices for April delivery were assessed around USD 895/ton, showing a jump of USD 205/ton from the February delivery prices.
Asia-Pacific (APAC)
PX supplies were tight in the Asia Pacific during Q1 2021, due to limited spot availability of the upstream products, followed by the several plant shutdowns observed in the region amid Chinese Lunar New Year holidays causing total 480,000 tonne of Paraxylene production loss in the region. Sinopec (East China), Zhejiang Petrochemical, Sinopec Yangtze, CNPC Sichuan and several other producers went temporarily offline in March adding to the inventory pressures and raised offers. Amid the global supply shortage, the prices in China took a rigorous 23.9% upswing by USD 173/ton on month-on-month basis in March. Strong demand for Chinese PX from the US contributed well to the market sentiments.
Europe
PX supplies in the European region were tight, during the first quarter of 2021, due to the lower operating rate of refineries in the northwest European region amidst cold weather conditions, followed by decline in imports from the USA which further tightened the market supplies. Demand surged as offtakes from downstream PTA sector surged. Some market participants seemed optimistic that the product fundamentals have improved over the last year and anticipated the bullishness to continue at least till the H1 2021.
For the Quarter Ending September 2020
North America
Market sentiments of Paraxylene remained healthy under restricted supply of feedstock Mixed Xylene due to unplanned shutdown in one refinery followed by maintenance turnaround in another refinery. Shortage of aluminum strengthened the demand for PET bottles and containers thereby propelling the demand for feedstock Paraxylene. However, sudden paucity of the co-feedstock MEG for PET production amidst series of indefinite turnarounds implemented under the fears of Hurricane Laura, created bottleneck for production of PET, thus parallelly lowering Paraxylene profit margins towards the end of the quarter.
Asia
Demand in the Asian Paraxylene market gradually dropped under dull offtakes for the derivative PTA due to planned maintenance turnarounds in several PTA facilities. Manufacturers were heard operating at a comparatively lower rate than previous quarter due to the fragile production margins being encountered by the end-use industries. Resumption of operations at certain plants like Dongying Weilian Chemical and Sinopec Hainan in the manufacturing hub China further pressurized the market fundamentals of Paraxylene in the quarter ending September 2020.
Europe
Ample supply amidst subdued demand in the region on the back of weakened PTA resulted in an overall dull market of Paraxylene in Q3 2020. Supple inventories of the product left no room for the sellers to spread their profit margins. To assist the hovering fundamentals, few European producers were seen implementing production cuts, but certainly, it was not enough to rebound its hovering sentiments. Owing to the reduced regional demand, spot activities were extremely limited as buyers restrained to buy volumes pressured under the present demand uncertainty.
