Xylene Market Faces Downstream Drag from Slow Polyester Demand

Polyester Chain Overcapacity

The demand for paraxylene (the primary derivative of xylene) has been dampened by high inventories of synthetic fibers. Until global retail demand for textiles improves, xylene producers will face difficulty in pushing for higher contract prices.

Refinery Reformate Value

As refiners maximize light-end production to offset falling fuel margins, the availability of xylene has remained high. This ample supply, combined with the loss of blending value in the motor fuel pool, is keeping xylene prices tethered to the lower end of the aromatic complex.