Asia
In Asia, the mixed xylene market started on a slower note, with demand from key downstream sectors like paints, coatings, gasoline blending, and lubricants remaining moderate. End-user consumption showed little improvement, keeping market sentiment soft. Chinese buyers, in particular, were cautious in procuring import cargoes, as concerns over demand continued to dominate the region.
Despite a temporary bottoming-out of prices, the overall buying enthusiasm stayed low. Super Typhoon Yagi made landfall in parts of China and Vietnam during the period, but its impact on supply chains was minimal, further reflecting the general sluggishness in the market.
Europe
In Europe, mixed xylene prices firmed in early July due to a surprising increase in domestic demand and higher upstream costs. The planned cracker outages, especially in Germany, and a rise in natural gas prices contributed to the upward trend in the first half of the quarter. However, as the quarter progressed, the market took a downward turn due to weak buying sentiments, ample material availability, and sluggish demand from downstream sectors like paints and coatings.
The construction sector's slowdown, compounded by high interest rates and inflationary pressures, further softened demand. By September, the market sentiment remained muted, with tepid inquiries and abundant stock levels pushing prices lower. Export demand also diminished, keeping the European market on a downward trajectory.
North America
In North America, mixed xylene followed a similar trend, driven by fluctuating demand from the gasoline blending sector and the broader chemical industry. In the early part of Q3, rising feedstock costs, including crude oil and naphtha, kept prices supported. However, towards the latter part of the quarter, market players reported weaker buying interest, especially in the face of economic uncertainties. Slower industrial activities and tepid downstream demand weighed down market sentiment, and producers adjusted their operating rates to align with softer demand trends.