The entire PX industry chain in Europe is affected

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　According to a report released by ICIS recently, the ongoing shortage of xylene (PX) supply in the Asian market has driven prices up significantly this month, and the PX-based chemical industry chain in Europe is facing price pressures as a result. 　　On the upstream side of PX, due to limited crude oil supply resulting from conflicts in the Middle East, the operating rate of PX plants in Asia dropped by about 10–20 percentage points in March. European PX production is currently less directly affected; only one local producer has reduced its output due to recent force majeure issues related to polyethylene terephthalate (PET), while other companies are expected to maintain normal production levels in the short term. Compared to Asia, European PX importers are less affected by geopolitical tensions in the Middle East; ships coming from Saudi Arabia and Israel usually travel via the Red Sea and the Mediterranean respectively, without having to pass through the Strait of Hormuz. 　　Since the outbreak of the Middle East conflict on February 28, ICIS’s weekly assessment of China’s PX price range has been increased by $328 per ton, which is equivalent to approximately 286 euros per ton at the current exchange rate between the euro and the dollar. The European PX contract price (ECP) for March is expected to be finalized later in March. Even though Asian PX prices declined in the second half of March, most market participants still expect European PX contract prices to rise significantly. 　　Although downstream companies in the PX sector have increased their willingness to make purchases due to rising PET prices, there has been no significant improvement in end-demand; overall, the situation remains similar to that in 2025, with only modest expectations. The current market is extremely unstable, and the timing of a price correction is not yet clear. Looking ahead, several institutions warn that once supply returns to normal, the market could quickly revert to a situation of oversupply. 　　The industry disruptions caused by the conflicts in the Middle East, along with soaring global prices, also threaten Europe’s imports of PTA. Affected by force majeure at PET plants, the Polish company Orlen has reduced the operating capacity of its PTA plants. It remains to be seen whether a low load level will be maintained going forward, or whether other local suppliers can fill the gap caused by high prices and delayed imports. What concerns PTA buyers even more is the European Commission’s recent proposal to impose temporary anti-dumping duties on PTA imported from certain companies in South Korea and Mexico, as the vast majority of PTA imported into Europe comes from these two countries.