Xylene prices in China saw a significant rise in January 2024

Xylene prices in China have experienced a noticeable increase in January 2024. Procurement Resource reported a surge of approximately 3.08% in xylene prices from December 2023 to January 2024. This uptrend is linked to the rising costs of feedstocks used in the production of xylene, primarily crude oil and benzene.

The market for toluene, a close relative of xylene and a significant component in the production of numerous chemicals, has also shown a price increase in China, climbing by 2.61% in January compared to the previous month. This rise has been influenced by the assertive pricing of crude oil and benzene, according to Procurement Resource. Similarly, the Chinese benzene market is witnessing an upward trend, with considerable month-on-month price escalation. The post-holiday market tightness coupled with strong demand from downstream sectors such as aniline and styrene manufacturing is propelling benzene costs upward. Nonetheless, the potential for future price reductions looms due to the global crude oil price dynamics and an uptick in OPEC production.

On the broader energy front, January 2024 has seen U.S. crude oil prices ascend by 1.65% from December 2023, which eventually pulled the Xylene prices up. The contributing factors to this uptrend are supply-related anxieties, largely due to the ongoing Red Sea crisis and extreme winter conditions, particularly affecting production in North Dakota. Industry analysts suggest these developments could signal impending supply deficits. Additionally, a widespread cold spell across various states has further complicated production capabilities.

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According to Procurement Resource, in January 2024, China's xylene prices rose by 3.08%, driven by increased feedstock costs, particularly for crude oil and benzene. The uptick mirrors toluene's 2.61% price hike, influenced by robust demand and tight post-holiday markets, amidst a broader 1.65% rise in U.S. crude oil prices due to supply concerns.