Xylene Prices Drift Lower as Downstream Polyester Sector Slows

Polyester Chain Overcapacity

Global textile demand remains stagnant, leading to high inventories of paraxylene and 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.

Integration and Margins

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 market remains comfortably supplied.