The global mixed xylene (MX) market supply and demand situation will tend to balance in the second half of the year

Market analysts said that entering the second half of the year, the global mixed xylene (MX) market supply and demand situation will tend to balance.
Affected by the resumption of production after the shutdown of MX devices in Japan and the shutdown of some major end users, the shortage of supply in the Asian MX market will be effectively alleviated; the increase in the operating rate of PX devices and the increase in driving activities will alleviate the oversupply of the MX market in Europe Status: Rising refinery operating rates and the sharp rise in benzene prices will prompt the supply of MX in the United States to become more abundant.

Supply shortage in Asia will ease

With the resumption of production of Japanese MX devices after shutdown for maintenance, the supply shortage in the Asian heterogeneous MX market in the second quarter may be eased.

In addition, major MX end users in Asia such as Taiwan’s Taiwan Chemical Fiber Corporation (FCFC) and South Korea’s Lotte Chemical Company plan to close the aromatics plant (which produces PX, benzene, and o-xylene) for maintenance shutdowns, which will reduce the cost of heterogeneous MX.

At the same time, downstream PX will be affected by the start of the second phase of China's Zhejiang Petrochemical.

A Northeast Asian PX manufacturer is concerned about the increase in PX supply, which may lead to a decline in the operating rate of its PX plant, thereby reducing MX demand.

　　At the same time, affected by the epidemic, Indian demand is still very uncertain in the second half of the year.

　　Oversupply in Europe will be reversed

　　The growth of demand in the European MX market in the second half of the year will depend on the increase in the operating rate of PX devices and the increase in driving activities.

　　Since the beginning of this year, due to the unplanned shutdown of the PX plant, the demand for MX as a chemical raw material has been suppressed, and the competitiveness of MX as a gasoline blending component is far less competitive than reformed gasoline or methyl tert-butyl ether (MTBE) as a gasoline blender Component.

　　An MX seller in Europe said: “Currently, many PTA devices in Europe are under maintenance and repairs are expected to be over soon.

　　U.

　　Although the Texas winter storm in mid-February and subsequent power outages resulted in planned shutdowns for overhauls and the closure of reformers, limiting the output of MX producers.
However, in the second half of this year, the supply of MX along the US Gulf Coast will still tend to be abundant.

　　U.
S.
refinery operating rates fell sharply during the winter storm in February this year, but rose to 86.
5% in May, slightly lower than the level before the COVID-19 pandemic.
According to the forecast of S&P Global Platts, by midsummer, the operating rate of US refineries may be close to 95%.

　　In addition, demand growth and supply tightening have led to a bullish trend in the U.
S.
benzene market in 2021.
The sharp rise in the price of spot benzene has greatly improved the economics of toluene disproportionation, and the supply of MX as a by-product of toluene disproportionation will also increase.

　　At the same time, downstream PX producers' demand for MX will depend to a certain extent on the recovery of American acetic acid supply.
Previously, the supply of acetic acid in the United States was reduced due to a winter storm in Texas.
A market participant said: "Due to the unstable supply of acetic acid, the start of the PET/PTA industry chain is limited, which in turn affects the demand for PX and the operating rate of the device.
"

　　The continuous increase in global PX production capacity has put pressure on PX prices and production profits.
In the first quarter of 2021, the PX imported by the United States from the Middle East and other regions will be the same as in the second half of 2020.
As long as the import price of PX from the U.
S.
Atlantic coast is still lower than the price for purchasing, transporting and processing PX produced by the U.
S.
Gulf Coast MX, the demand for the U.
S.
Gulf Coast raw material MX will continue to be restricted.

　　Transfer from: Chemical Network