For the Quarter Ending March 2025
North America
In Q1 2025, the North American Paraxylene (PX) market experienced a mix of upward and downward trends, driven by fluctuations in feedstock prices and subdued demand. Prices showed a recovery in the last week of January, with PX prices rising to USD 894/MT FOB Texas. This increase was largely driven by higher production costs, attributed to rising crude oil and naphtha prices. However, the overall market sentiment remained bearish, as demand from key downstream sectors like PTA and polyester production remained weak.
Throughout the quarter, the supply side remained stable, with refineries maintaining production levels. However, weak demand, particularly from the petrochemical sector, continued to exert downward pressure on prices. Additionally, external factors such as economic uncertainty and global trade concerns further suppressed market activity, preventing any major recovery in PX prices.
By the end of Q1, the market remained cautious, with PX prices continuing to be influenced by external market factors and weak downstream consumption. As a result, while prices showed brief upward movement in January, the overall trend for the quarter was subdued, with the market facing challenges due to low demand and fluctuating feedstock costs.
APAC
In Q1 2025, the Paraxylene (PX) market in South Korea experienced fluctuations, with prices rising in the last week of January to USD 858/MT FOB Busan due to tightening supply conditions and the anticipation of lower production during the Lunar New Year holiday in China. These supply constraints, along with a cautious market sentiment driven by geopolitical uncertainties, helped push prices higher, despite weak demand from downstream sectors such as polyester.
Throughout Q1 2025, PX prices fluctuated due to a combination of supply-side factors and weak downstream demand. Early in the quarter, the market experienced a bearish trend, driven by declining consumer sentiment and reduced demand from the polyester sector. The downturn was further influenced by falling feedstock costs, particularly Naphtha, and weaker refining margins. Additionally, plant shutdowns and maintenance, especially in February and March, added to the supply-side pressures.
By March, prices continued to face downward pressure, largely due to sluggish demand from key sectors and weak exports. However, some signs of stabilization emerged towards the end of the quarter, as supply disruptions helped maintain a balance.
Overall, Q1 2025 for Paraxylene in South Korea was marked by a mix of price fluctuations, with rising prices in the last week of January, followed by a generally bearish trend due to weak demand and economic uncertainty.
Europe
In early Q1 2025, the Paraxylene (PX) market in Germany demonstrated a mixed price trend, beginning with a bullish phase in the early weeks of January. During the last week of January, PX prices stabilized at USD 851/MT due to a balance between rising upstream costs driven by higher crude oil and naphtha prices, and a subdued demand from the petrochemical sector. Despite challenges in polyester and PET demand, the fuel production sector supported PX prices due to increased gasoline and diesel consumption, particularly in response to colder weather in Germany.
In February 2025, PX prices remained stable, supported by consistent supply dynamics and steady production levels. However, the broader petrochemical sector faced challenges from high energy costs and growing competition, which limited demand growth. Refiners in Germany also adjusted their operations due to low refining margins, which reduced naphtha intake and indirectly impacted PX consumption for fuel blending. While prices did not fluctuate significantly, market participants were cautious, given the uncertain economic outlook and the subdued demand in key downstream markets.
By the end Q1 2025, PX prices turned bearish as logistical disruptions and rising feedstock inventories exerted downward pressure on the market. Weaker demand from both the petrochemical and fuel sectors exacerbated the decline. High gasoline inventories and limited refining activity resulted in decreased PX consumption in fuel blending, while the ongoing downturn in polyester demand further weakened the market. This shift in market dynamics led to a steady decline in prices, marking the conclusion of a mixed quarter for Paraxylene in Germany.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American paraxylene market experienced a significant quarter-on-quarter decline of 9.8%. This was largely driven by a decrease in crude oil and naphtha prices, which lowered feedstock costs and, in turn, production expenses. The reduced production costs exerted downward pressure on paraxylene prices.
Additionally, the demand from the downstream petrochemical sector remained weak, which further supported the bearish market trend. Refinery output in the region also showed a decline, with refineries operating at reduced capacity. This reduction in refining activity, combined with an increase in crude oil inventories, contributed to lower crude oil prices, which impacted the broader petrochemical market.
Despite some fluctuations in crude oil prices, the stability in naphtha prices and weaker demand from key sectors, including fuel production and gasoline blending, contributed to a subdued market sentiment for paraxylene. The global economic environment, with uncertainties surrounding geopolitical tensions and inflationary pressures, also added to the overall slowdown. The North American paraxylene market remained under pressure, reflecting a challenging market landscape for the quarter.
APAC
In Q4 2024, the paraxylene market in the APAC region, particularly Japan, experienced a significant quarter-on-quarter decline of 11.5%. This downward trend was driven by weak demand from the downstream petrochemical and textile industries, especially the polyester sector, which is a key consumer of paraxylene. The overall market sentiment remained bearish, with continued oversupply in the market and a decline in crude oil prices, putting further pressure on production costs and prices. Despite a moderate increase in naphtha prices, the paraxylene market struggled with low margins, exacerbated by an oversupply of the product and weak demand fundamentals. In the upstream market, crude oil price fluctuations led to volatility, but the continued weak demand from key end-user industries like the packaging sector contributed to the overall price decline. Additionally, refinery margins were squeezed due to stunted profitability, resulting in some plant shutdowns. As a result, the paraxylene market in Japan faced significant challenges in Q4, marked by a notable price decline and subdued market activity.
Europe
In Q4 2024, the paraxylene market in Europe, especially in Germany, experienced a sharp quarter-on-quarter decline of 18.7%. The market faced numerous hurdles, including low demand from critical downstream sectors like petrochemicals and fuels, which led to significant downward pressure on prices. The textile and packaging industries, which are primary consumers of paraxylene, exhibited weak demand, further exacerbating the market downturn. Although naphtha prices saw some fluctuations, leading to changes in production costs, the overall impact on paraxylene prices was muted, as excess supply continued to outpace consumption. Additionally, Germany's economy showed signs of stagnation, which was reflected in lower business activity and reduced production levels across industries. The political instability in the country added to the uncertain market sentiment, further contributing to the declining trend. The refining sector also experienced challenges, with limited output from refineries, especially after maintenance periods. While there was an increase in heating oil purchases in anticipation of the winter season, overall demand for paraxylene remained subdued. Consequently, the European paraxylene market faced an overall downturn in Q4 2024.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a significant downturn in Paraxylene prices, with the market experiencing a notable -26% decrease from the same quarter last year. This decline was further emphasized by a -7% drop from the previous quarter in 2024. The USA market, in particular, saw the most substantial price changes, with a -10% variance between the first and second half of the quarter. This negative trend was reflective of broader market conditions characterized by supply chain disruptions, subdued demand, and production challenges.
Various factors influenced this downward trajectory. The decrease in crude oil prices, geopolitical tensions, and reduced refining margins all played a role in driving Paraxylene prices lower. Additionally, fluctuations in feedstock markets, weak demand from downstream sectors, and seasonal destocking further contributed to the negative pricing environment.
Ultimately, the quarter-ending price for Paraxylene DEL Houston in the USA stood at USD 832/MT, underscoring the prevailing bearish sentiment in the market. This challenging pricing environment highlighted the complexities and uncertainties faced by players in the Paraxylene market during Q3 2024.
APAC
Paraxylene pricing in the APAC region during Q3 2024 has been significantly impacted by various factors leading to a notable decrease in prices. The market witnessed a substantial -22% decline compared to the same quarter last year, with a -6% decrease from the previous quarter in 2024. The first half of the quarter saw a notable -11% drop in prices. In Japan, which experienced the most significant price changes, the market trended negatively due to sluggish demand from downstream industries and oversupply situations. The correlation between feedstock prices, crude oil market fluctuations, and decreased demand played a crucial role in the bearish market sentiment. The latest quarter-ending price in Japan stood at USD 840/MT, reflecting the overall decreasing pricing environment. Despite stable production costs, the declined demand from downstream sectors and global economic uncertainties contributed to the downward pressure on Paraxylene prices in Japan throughout the quarter.
Europe
In Q3 2024, the Paraxylene market in Europe experienced a significant decline in prices, with Germany being the most impacted. The market was influenced by several key factors leading to the downward trend. Decreased demand from downstream sectors, particularly in the polyester industry, coupled with oversupply conditions, contributed to the price decreases. Additionally, stable feedstock prices and sluggish economic growth in the region further pressured Paraxylene prices.
Germany, with the maximum price changes, saw a -26% decrease from the same quarter last year, with a notable -6% decline from the previous quarter in 2024. The price comparison between the first and second half of the quarter showed a substantial -11% decrease, highlighting the consistent downward trend throughout the quarter. The latest quarter-ending price of USD 890/MT for Paraxylene FD Hamburg in Germany reflects the prevailing negative sentiment in the pricing environment. Overall, the quarter was marked by a challenging market landscape with prices steadily declining, indicating a bearish trend for Paraxylene in the European region.
For the Quarter Ending June 2024
North America
In Q2 2024, Paraxylene pricing in North America has exhibited a consistent decreasing trend, influenced by several critical factors. The market was notably impacted by weak demand fundamentals across various sectors, leading to subdued buying interest. Despite a moderate recovery in downstream industries like PTA and PET, the overall purchasing activity remained constrained. Additionally, the petrochemical market faced downward pressure from declining crude oil prices, which were exacerbated by increased inventory levels and a global economic slowdown. Higher interest rates further tempered economic growth, indirectly affecting demand for paraxylene.
Focusing on the USA, the region experienced the most significant price fluctuations, mirroring the broader market sentiment. The downward trend in paraxylene prices was amplified by an oversupply situation, as production outpaced demand. Seasonality played a role, with the summer months typically seeing lower consumption rates in the downstream polyester sector. The correlation between declining crude oil prices and paraxylene was evident, as cheaper raw materials reduced production costs, leading to lower market prices.
Year-over-year, the second quarter saw a 5% decrease in prices compared to the same period in 2023. From the previous quarter in 2024, prices remained stagnant, reflecting a 0% change. However, a more pronounced decline was observed between the first and second half of Q2, recording a 2% drop. The quarter concluded with Paraxylene prices at USD 1024/MT DEL Houston, underscoring a negative pricing environment throughout the period. This consistent decrease highlights the challenging market conditions, driven primarily by oversupply and subdued demand.
APAC
In Q2 2024, the paraxylene market in the APAC region experienced a significant upward trend. This quarter saw a notable increase in prices driven by several critical factors. The primary influences included a rise in upstream crude oil prices, heightened demand from downstream industries such as PET and PTA, and supply chain disruptions due to maintenance activities at various plants. The convergence of these elements created a robust environment for paraxylene pricing, leading to substantial market movements. Focusing on Japan, the country experienced the maximum price changes in the region. The overall trend was marked by an increasing price trajectory driven by strong seasonal demand for downstream applications in the polyester and PET bottle industries. The positive market sentiment was further supported by the limited availability of competitively priced imports and higher input costs due to the surge in crude oil prices. Additionally, the country's strategic shifts in crude oil import strategies, favouring more economical US cargoes over traditional sources, played a crucial role. From a year-on-year perspective, paraxylene prices in Q2 2024 reflected a 6% increase compared to the same quarter in the previous year. This growth was complemented by a 3% rise from the preceding quarter in 2024, underscoring the consistent upward momentum. Notably, the price comparison between the first and second halves of the quarter showed a modest 2% increment, indicating a gradual but steady increase throughout the period. By the end of the quarter, the price of paraxylene FOB Tokyo in Japan reached USD 1040/MT.
This culmination reflects a positive pricing environment, characterized by strong demand, constrained supply, and rising raw material costs, all contributing to the upward trend in paraxylene prices.
Europe
In Q2 2024, the Paraxylene market in Europe has experienced a notable decline in prices, driven by several significant factors. The overarching sentiment has been decidedly negative, influenced predominantly by an abundant supply landscape and subdued demand from downstream industries, particularly PET and polyester. This oversupply situation has been compounded by declining global crude oil prices, which serve as a crucial input for Paraxylene production. Additionally, the market's cautiousness due to geopolitical tensions and economic uncertainties further restrained purchasing activities, contributing to the downtrend. Focusing on Germany, which has registered the most pronounced price changes, the overall trend reveals a clear seasonal pattern of weakening prices. The second quarter observed a price decrease, showing a 5% decline from the same quarter last year. This signifies a continued bearish trend when compared to the previous quarter in 2024, which saw a 2% reduction. The first half of Q2 presented a slightly better outlook, but prices deteriorated by 2% moving into the latter half, reflecting the ongoing instability in market conditions.This steady decline underscores the negative pricing environment, shaped by sustained high supply levels juxtaposed against lukewarm demand and broader economic hesitations. The German market, therefore, mirrors the overall European sentiment of declining Paraxylene prices, driven by complex and interlinked market forces.
