Global Mixed Xylene Market Witnesses Mixed Sentiment at the End of Q1 2023

Mixed Xylene prices have showcased an oscillating trend across the global market during the fourth week of March 2023. In the USA and Asian markets, Mixed Xylene prices showed stability backed by the steady demand dynamics and ample supply in the regional market. Additionally, the deepening banking crisis in the USA has weakened market confidence. Although, in the European market, Mixed Xylene prices have been observed on the lower side due to weak cost pressure from the feedstock Toluene. At the same time, demand from the downstream value chain has remained tepid.

Prices of Mixed Xylene showed stagnancy with a marginal increment of 0.6% in the Chinese market, supported by the stable demand dynamics. Operating rates have remained consistent in the domestic market while the imports from neighboring South Korea and other exporting countries have remained steady, which resulted in sufficient material availability in the Chinese ports. On the other side, demand for Mixed Xylene from the downstream value chain o-Xylene, p-Xylene, and m-Xylene has remained stable. Though manufacturing activity expanded at a slower pace in March as economic recovery in regional bellwether, China remains slower than initially expected following its reopening from the pandemic. According to the National Bureau Of Statistics, Purchasing Manager Index slightly dropped from 52.6 to 51.9 in March, compared with the previous month, but still above 50. Furthermore, as per the market sources, the export order slid to 50.4 against 52.4 in February 2023. Thus, prices of Mixed Xylene Ex- Qingdao were assessed at USD 1090/MT during the week ending 24th March.

On the other hand, the ribbing inflationary pressure and fears of a financial crisis amid the failure of two banks, Silicon Valley and Signature Bank, have weakened the economic condition in the US market. Market participants reported that the inventories of Mixed Xylene in the domestic market were adequate to cater to the inquiries from the end-user market. Overall, there were no supply hiccups observed in the given time frame. The reluctance of downstream value chain manufacturers to accumulate stocks has resulted in stabilized market operations for Mixed Xylene. As a result, prices of Mixed Xylene FOB Texas were observed at USD 1116/MT during the previous week.

Although, Mixed Xylene prices have inched lower in the European market owing to the subdued demand dynamics and firm supply. In terms of domestic production, operating rates have been under check in the wake of weak consumption from the domestic as well as from overseas markets. While raw material Toluene prices have also dropped, resulting in the region's lower production cost of Mixed Xylene. Furthermore, demand from the downstream value chain has remained lackluster. Market participants reported limited queries from the end-user. On the other side, the recent strike in Germany by the Verdi and dbb union in response to soaring inflation has impacted the logistics sector. However, it has not significantly impacted the market at a broader level, as there has been sufficient availability of the material in the region. Hence, prices of Mixed Xylene FOB Hamburg were settled at USD 962/MT with a week-on-week decrement of 3.3%.

As per ChemAnalyst estimation, global Mixed Xylene prices will increase owing to the further expectation of growing demand from the downstream p-Xylene industry. At the same time, the feedstock Toluene price may be an inch high, which might positively impact the production cost of Mixed Xylene in Q2 of 2023. Furthermore, it is anticipated that the worker strike in Germany will continue after the busy Easter holiday, which may have an impact on the supply chain in the near future.