Xylene Prices Drifting on Weak Polyester Chain Fundamentals

Polyester Overcapacity

The global textile and packaging markets are currently well-supplied, leading to a surplus of paraxylene. Until this downstream glut is cleared, xylene producers will find it difficult to push for higher prices.

Mixed Isomers Outlook

While isomerization-grade xylene is weak, demand for solvent-grade material remains steady. This divergence is causing a split in the market, with solvent-grade material commanding a minor premium over chemical-grade.