Xylene Prices Face Headwinds from Downstream Polyester Sector Slowdown

Polyester Overcapacity

Global textile demand remains stagnant, leading to high inventories of polyester fibers. Until this downstream glut is cleared, xylene producers will find it difficult to push for higher prices.

Operational Shifts

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