Meta Xylene Price Trend and Forecast

Meta Xylene Regional Price Overview

Get the latest insights on price movement and trend analysis of Meta Xylene in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Meta Xylene Price Trend for the Q3 of 2024

Asia

The meta-xylene market in Asia faced a challenging quarter, as demand from key downstream sectors like polyester and purified terephthalic acid (PTA) remained subdued. The construction industry slowdown and overall economic uncertainty weighed heavily on consumer spending, leading to muted purchasing activity from converters.
 

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Buyers in China, a major consumer, adopted a cautious stance, restricting their import volumes and further exacerbating the demand slump. Despite stable supply, the reduced offtake from end-users created a buildup of inventories, putting downward pressure on prices. Volatility in upstream feedstock costs, such as crude oil and naphtha, added to the market's instability, as producers struggled to pass on the increased expenses to their customers.

Europe

The European meta-xylene market mirrored the trends observed in Asia, with weak demand from the downstream polyester and PTA sectors. The slowdown in the construction industry, compounded by high inflation and rising interest rates, weighed heavily on consumer confidence, translating into reduced consumption of meta-xylene-derived products. Additionally, the easing of feedstock costs, specifically naphtha, put further downward pressure on meta-xylene prices in the region. Amidst these challenging conditions, market participants reported limited trading activity and ample material availability, leading to a bearish price trend throughout the quarter.

North America

The North American meta-xylene market also faced headwinds, with demand from the polyester and PTA industries remaining subdued. The manufacturing PMI in the United States stayed in the contraction zone, indicating ongoing struggles in the industrial sector, which directly impacted the meta-xylene market.

Domestic production experienced minimal disruptions, but high inventory levels and cautious buying behaviour from downstream consumers led to a decline in market prices. The volatility in crude oil and naphtha prices added to the market's instability, as producers and traders faced difficulties in managing their margins.

Analyst Insight

According to Procurement Resource, the Meta-Xylene market is expected to continue on a bearish trajectory in the upcoming sessions, mirroring the broader trends observed in the xylene isomers. The persistent weakness in downstream demand, coupled with the economic headwinds impacting consumer spending, is likely to keep the market sentiment muted.
 

Meta Xylene Price Trend for the Q2 of 2024

Asia

The meta-xylene prices in China oscillated in a narrow range due to high freight rates and limited ship availability, hindering trading activities. The strong demand from the downstream industry further, although supported by an uptrend in prices, contributed to an upward trend in the regional market. Similarly, in India, meta-xylene prices saw a notable increase driven by heightened buying interest from the downstream isophthalic acid industry, leading to short-term supply constraints. Despite recent rallies in crude oil prices lowering domestic production costs, feedstock mixed xylene prices decreased, having minimal impact on meta-xylene prices.

Additionally, domestic manufacturing firms reduced production rates due to a heatwave, resulting in limited material availability to meet existing downstream demand. Imports from South Korea, Singapore, and China into India also decreased due to severe port congestion in Asia causing significant delays in vessel schedules. The surge in ocean rates for Far East trades to India, coupled with ongoing congestion, exacerbated vessel schedule and space availability pressures, further influencing the meta-xylene price trajectory.

Europe

In Europe, meta-xylene prices edged lower during the second quarter of 2024, following a decline in feedstock prices. Despite stable demand from downstream derivatives supported by moderate inventories across the region, the downward adjustment in meta-xylene prices persisted. In the German market, prices continued to decline, with limited support from feedstock mixed xylene prices, which remained lower domestically.

The demand from the isophthalic acid industry also remained moderate, driven by steady consumption in the PET resin sector. Despite lower operating rates, sufficient material availability prompted manufacturers to adjust their offers downward in the domestic market. The overall stability in demand and ample inventories contributed to the declining price trend of metaxylene in Europe during this period.

North America

The North American market mirrored similar trends observed in Asia and Europe as the prices experienced consistent fluctuations throughout the second quarter of 2024. The interplay of feedstock costs, regional demand fluctuations, and logistical challenges exerted a significant influence on meta-xylene prices. Therefore, significant disruptions in supply chains and changes in downstream industry demand played crucial roles in determining the southward-moving price trajectory in this region.

Analyst Insight

According to Procurement Resource, the price of Meta Xylene is expected to struggle with lower rates of production and weak procurement of the commodity from the downstream industries.
 

Meta Xylene Price Trend for the Second Half of 2023

Asia

In Asia, the m-xylene market witnessed only marginal improvements during the final two quarters of 2023, falling short of traders' expectations. In China, the resumption of production in several plants after maintenance shutdowns strengthened the supply chains, but meek domestic demand influenced by rising inflationary pressure hindered any growth sentiments of the m-xylene price trend. Additionally, increased exports, notably to the US, increased the existing inventory levels and eventually caused a decline in the m-xylene price trend.

Europe

In Europe, following a brief bullish phase in the third quarter and the initial phase of the fourth quarter, m-xylene prices declined due to rising supply, reduced manufacturing costs, and sluggish demand. Decreased feedstock naphtha prices, stemming from poor domestic procurement and lower manufacturing expenses, were also some of the negatively influencing factors that depreciated the prices of m-xylene. Further, disruptions in exports caused by the Israel-Hamas conflict contributed to increased market inventories and downward pressure on M-xylene prices.

North America

In North America, the bearish outlook on m-xylene price trends during the Q3 and Q4 of 2023 mirrors the trend observed in the Asian and European countries. The most prominent cause of this slowed-down market momentum was attributed to the declining prices of raw materials like benzene, driven by weak demand and low procurement rates from downstream industries. In addition to this, economic challenges and fluctuations in the petrochemical sector also influenced market dynamics throughout the H2 and thus kept the prices of m-xylene on the lower end.

Analyst Insight

According to Procurement Resource, the price trend of m-xylene is estimated to be dictated by the cost of feedstock materials and trading activities around the globe.

Procurement Resource provides latest prices of Meta Xylene. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.