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.
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.
