Mixed Xylene market rebounding with gradually recovering operations in China

Despite the rising COVID cases and lockdown restrictions, the Mixed Xylene market witnessed an uptrend in China due to increasing demand from regional and international markets. Other factors influencing the price trend are the soaring crude and feedstock prices and the skyrocketing freight charges.

The intensified tension between Russia and Ukraine due to the conflict has severely affected the global economy by increasing the crude and natural gas values. Crude and Natural gas are major raw materials used in manufacturing various products, including Mixed Xylene. The fluctuation in the upstream crude price trend simultaneously affects the Mixed Xylene market.

In East China, the p-Xylene plant started on 26th April, and the production was stable. Paraxylene, an isomer of mixed xylene, is utilized in the production of Terephthalic acid, which serves in the manufacturing of PET monomers. During the summer season, demand for PET bottles rose rapidly due to the increased supply of soft drinks. Hence, the rising requirement for p-xylene from soft drink manufacturers has been showing positive support in the Mixed Xylene market. As a result, according to the ChemAnalyst database, Mixed Xylene prices in China rose to USD 1200 per MT Ex- Qingdao on 15th April.

However, the rising COVID cases in China and the strict Zero COVID policy affected the trade activities. Despite the fact that imports decreased in China, there was a slight pickup in export activities. Lockdown restrictions have impacted the demand from the domestic market, prompting the suppliers to divert their cargo to overseas markets to relieve the high inventory pressure. Furthermore, the skyrocketing freight charges due to fuel cost hikes resulted in the Mixed Xylene price hike.

As per ChemAnalyst, “Expected ease in port congestion might increase the import activities, resulting in the Mixed Xylene price rise in the upcoming weeks. If the lockdown ends, the demand from the downstream market might rise. Freight charges and the upstream crude prices are likely to rise if the ongoing geopolitical tension continues further.”