Inventory levels of mixed xylenes imported into East China increased by 9,000 mt, or 20%, week on week to 54,000 mt Friday, market sources said Friday.
"Almost 60% of the MX inventory currently in East China storages is solvent-grade mixed xylenes. [And there is weak demand for] solvent-grade MX in China due to the Lunar New Year holidays," a Chinese trader said.
The solvent-grade MX is mainly used for making paints and cleaning agents and with factories to remain shut during the week-long Lunar New Year holidays starting February 9, buyers have stopped procuring the product, sources said.
Traders had hiked MX imports since late last year, when prices started moving down after hitting an all-time high. The Asian solvent-MX price has been on a downtrend since last December, after hitting an all-time high of $1,320/mt CFR China on December 14.
Last Friday, the solvent-MX CFR China marker was assessed down $6/mt week on week at $1,247/mt.
"Chinese buyers tend to stockpile solvent-MX when prices are cheaper," a South Korean trader said. South Korea is one of the main suppliers of solvent-grade MX into China.
The stocks had also gone up as traders were looking to import more cargoes to replenish dwindling stocks in East China. In end-November the MX inventory in East China had dropped by 2,800 mt, or 12.3%, week on week to 20,000 mt -- a 44-month low, Platts reported.
Meanwhile, the MX inventory level in South China has also gone up by 2,000 mt, or 33.33%, week on week to 8,000 mt Friday.
