Indian MX Prices Decline on Weak Demand; Seasonal Recovery Expected in April

Key Highlights

• MX prices dropped to ₹67.50–68/kg due to weak demand and fiscal year-end slowdown.
• Supply remains sufficient from imports and domestic players.
• Paints and coatings demand expected to recover in April.
• Naphtha-to-Benzene spread remains profitable; Benzene-to-MX spread is negative.

Domestic Price Correction: MX Falls ₹3/Kg Amid Weak Fiscal-End Demand

• Domestic prices of Mixed Xylene (MX) have declined by ₹3.00 per kg week-on-week. Current rates stand at ₹67.50 per kg ex-Kandla and ₹68.00 per kg ex-Mumbai, based on 60-day payment terms.
• Trader offers, however, remain higher, hovering around ₹68.50++ per kg ex-Kandla and ₹68.75 per kg ex-Mumbai on 60-day credit terms.
• Domestic producer Reliance Industries Ltd (RIL) has also reduced its MX price recently by ₹3 per kg, bringing it to ₹67++ per kg ex-Hazira on advance payment terms.
• The decline in MX prices is attributed to lower replacement costs and reduced downstream demand due to financial year-end closing.

Steady Supply, Subdued Demand

• Supply remains ample from both imports and domestic producers, following strong seasonal demand for paints and coatings in January and February.
• However, demand from key downstream sectors—including paints, coatings, pesticides, leather, rubber, and printing inks—has remained weak in March due to price corrections in benzene futures.
• Notably, demand from major end-users in the paints and coatings segment is expected to pick up post-March due to seasonal factors.
• On the cracking front, the Naphtha-to-Benzene cracking spread remains profitable at $187/mt, comfortably above the $150/mt breakeven threshold. Conversely, the Benzene-to-MX cracking spread currently stands at minus $85/mt.
• Market participants anticipate demand for paints, coatings, and printing inks to improve in April. Concerns persist over supply availability due to frequent vessel arrivals and high inventory levels held by domestic manufacturers, according to industry sources.

Global Trends: Crude and Aromatics Prices Hold Steady 

• In the international markets, WTI crude oil benchmark prices rose marginally by 0.89%, settling at $69.61 per barrel. Meanwhile, FOB Singapore naphtha prices remain stable at $631 per metric ton.
• FOB Korea benzene prices stand at $818 per metric ton, while isomer-grade Mixed Xylene prices are at $734 per metric ton.

Expert Opinion: Seasonal Uptick Expected Post-March

• Expert suggest that mixed Xylene prices are expected to follow mixed trends in the short term due to financial year-end closing and subdued downstream activity. However, seasonal demand from the paints and coatings sector is likely to surge in April. Buyers are advised to explore inventory procurement opportunities during price dips.