US prompt mixed xylene spot prices dropped below 260 cents/gal this week for the first time in two months, as weak demand combined with well-stocked supply and declining feedstock energy futures helped push prices down.
The decline this week follows a 20-cent drop for prompt MX prices last week, which took prices to 260 cents/gal FOB USG last Friday. On Wednesday, prompt MX was assessed at 257 cents/gal FOB USG, the first time MX prices had been below 260 cents/gal since April 9, 2018, according to S&P Global Platts data.
Prompt MX remained at 257 cents/gal FOB USG on Thursday, which is below the market's previous price floors of toluene blend value and reformate, Platts data shows. Reformate prices were estimated at 262.05 cents/gal on Thursday, while xylene blend values was estimated at 268.62 cents/gal.
US MX prices were still above the Asian market, which was at 778.50/mt (256.08 cents/gal) FOB Korea on Thursday. Sources cited last week and early this week that with US MX moving below blend value and reformate, Asia would be the next price floor target.
US market participants have not said when they expect MX prices to rebound, pointing to continued weakness in energy futures and this week's build in gasoline inventory, which the Energy Information Administration showed was up by 3.3 million barrels last week at 240 million barrels.
