In the mixed xylene (MX) market in China, spot supply is perceived to be tight as domestic inventory remains low for a long time. In addition, with crude oil prices hovering high, market sentiment is bullish. On the demand side, operation rates of derivative paraxylene (PX) facilities are high and buying interest for MX is brisk. Further, demand as a gasoline additive remains firm and supply/demand fundamentals are tight.

Perceptions of tight supply are expected to continue going forward. On the other hand, while demand for PX is forecast to be firm, demand as a gasoline additive might recede. In North America, the high-demand season for gasoline is nearly finished and profits for use as an additive are shrinking. As a result, the MX market is anticipated to lose the momentum that has been seen so far.