Initially Mixed Xylene prices were not factoring much into the Paraxylene prices, however, during the escalation of crude oil prices during April, when it was above the $110 range, the cost push impact was being felt at MX level affecting Paraxylene as well. Now that the crude oil price has dipped to below $100 / barrel, the MX settlement has gone in a state of flux with the sudden lapse of feedstock prices which had lent it support. April as well as May prices, of $4.3152/gal & 3.75-3.85/gal respectively, were settled as the average of spot, during the later part of the month. June should be heading in a similar direction. The downward movement was also seen for the West European as well as the Asian market where the MX prices aped crude oil movement. European prices fell from mid $1300 levels to $1230-1240 levels from April to mid May. Similarly for Korea, at $1300-1325/ton fob, and Northeast Asia, at $1330-1340 cfr range during April fell to ~ $1205 fob Korea.
Other than crude oil price downward movement, an impact of oversupply due to force majeure of BP’s 1,100 ktpa paraxylene plant in North America, has made the supply situatuion long. This has helped in maintaining the downward price sentiment of MX atleast in this market.
