Paraxylene price plunges in Asia as demand shrinks

Paraxylene prices declined in Asian markets in the third week of August as availability increased amid weak demand. China’s Ningbo Zhongjin Petrochemical achieved on-spec paraxylene and benzene output from its new aromatics plant in eastern Zhejiang province earlier this week. Orthoxylene prices also fell amid declines in upstream and downstream demand. Asian paraxylene markers fell US$39 a ton FOB Korea and CFR Taiwan/China both on the week.

In US, paraxylene spot markets tracked falling Asian numbers while demand was reportedly quiet and the spread between mixed xylene and paraxylene remained unattractive. Demand from gasoline blending also weakened amid poor derivative production economics. Spot paraxylene assessments in US tumbled US$75 a ton FOB USG for the week. Spot mixed xylene fell US cents 12 per gallon from a week ago.

In Europe, contract price for July was down Euro25 from June and Euro10 below the initial settlement. Paraxylene prices remained unchanged in Europe.

Courtesy: Weekly PriceWatch Report

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