In March 2025, prices of o-xylene in the USA have declined due to a decrease in global crude oil prices, as well as the weak demand from the phthalic anhydride sector. Overall bearish sentiment in the market exerted downward pressure on prices.

In the USA, o-xylene prices dropped due to lower global crude oil prices, which incentivized lower production costs. As per the ChemAnalyst data, the upstream crude oil prices declined by 4.2% during March 2025 due to an increase in the OPEC+ supply chain and reduced global consumption amid tariff-trade uncertainty. Although feedstock naphtha prices were mostly unchanged, the drop in crude oil prices generated weakened market sentiment, which led to lower o-xylene prices as producers reacted to lower input costs and weakening buyer interest.

In addition, demand from the phthalic anhydride sector for o-xylene declined, adding to the downturn in prices. Phthalic anhydride, the foremost derivative of o-xylene, is a common building block for use in plasticizers, resins, and coatings. Lingering demand from downstream markets was muted, and consumption was limited, which further softened price advances in the market.

Moreover, the consumer confidence in the USA market has dropped, which lowered the trading atmosphere. Cautious investments and reduced downstream PVC plasticizer consumption have impacted the inquiries of o-xylene. Additionally, sluggish demand from the downstream resin and plasticizer industry further supported the price trend. With plasticizer producers operating at moderate levels and limited purchasing enthusiasm from end-users, o-xylene market sentiment weakened.

While the o-xylene prices in the USA market have experienced a downtrend trend, o-xylene prices remained stable in Germany due to prevailing market sentiments. The demand from the downstream plasticizer sector remained dull due to sluggish construction activity, as in the construction industry, a reduction in infrastructure investments and lack of new project approvals limited PA-based plasticizer usage, with ongoing projects offering little support.

Looking ahead, the ChemAnalyst expects that o-xylene prices will rise in the next month in the USA and Germany. In the USA it is expected to increase due to a rise in global crude oil prices and demand from downstream industries. At the same time in Europe, prices are likely to go up due to rising demand from phthalic anhydride industries. As the economy begins to return to normalcy, it's predicted that increasing consumption from phthalic anhydride will add momentum to these increases, leading to a bullish outlook for o-xylene prices in both regions.