Xylene Market Faces Downstream Drag from Slow Polyester Growth

Polyester Overcapacity

Global textile demand remains stagnant, leading to high inventories of finished polyester fibers. Until this downstream glut is cleared, xylene producers will find it difficult to push for higher prices, especially with refinery reformate supply remaining steady in major hubs like South Korea and China.

Operational Integration

Integrated refinery-petrochemical sites are currently prioritizing benzene production over xylene, as benzene margins are comparatively healthier. This shift in operational focus may eventually tighten xylene supply, but for now, the spot market remains comfortably supplied.