Asian PX prices dropped to $1,000.5, the lowest level this year

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Asian PX prices drop to this year’s low, according to Sinochem New Network. Recently, Standard & Poor’s Global Commodity Insights stated that as of July 24, prices of paraxylene (PX) in Asia had reached their lowest levels this year, due to increasing supply in the region and weak demand. According to S&P Global, on July 24, Asian PX prices (per ton, the same below) dropped by $6 to $1,000.5, reaching their lowest level this year. A trader in Singapore said, “As market buying appetite weakens and excess supply results from producers increasing production levels, spot prices are declining steadily. In such a situation, buyers refrain from making purchases in the spot market and wait for lower prices.” ”It is reported that initial signs of weakness in the PX spot market appeared as early as the first half of 2024. As the demand for gasoline blending products declines, manufacturers that previously sought to produce gasoline blending components are now turning to PX production, which increases the likelihood of a surplus in the PX market. A trader in South Korea noted that in addition to weak demand for gasoline blending, the difficulties faced by downstream industries have further exacerbated concerns related to consumption. He also said that demand for polyester was weak. S&P Global said high inventory levels and weak purchasing interest have prompted major downstream manufacturers in Northeast Asia to cut prices significantly in an effort to attract customers. According to S&P Global data, Asian PX spot prices reached their highest level of the year on September 15 last year, at $1,160. “Q3 is usually a peak period for demand, and market demand has been very strong in Q3 over the past three years; August and September are typically the months when prices reach their highest levels. However, the situation is different this year. ”A PTA producer in Northeast Asia said, “Due to weak demand from downstream industries, producers are reducing their production levels.” ” Despite the oversupply, a PX producer in Southeast Asia decided to increase its operating rate, as the price difference between benzene and naphtha provided support. Meanwhile, another producer in the region is currently maintaining an operating rate of around 87% for its xylene plant.