US spot mixed xylene prices have shrugged off slow demand from gasoline blenders at a time of cheaper RBOB, and instead found support from recent strength in chemical demand, sources said.
US spot prices have hovered in the $2.08-$2.13/gal FOB US Gulf Coast range so far in July, based on S&P Global Platts data. Platts assessed US MX spot prices at $2.08/gal or $630.24/mt FOB USG Wednesday.
The US summer driving season is well underway, but gasoline blending demand has not strengthened amid ample octane supply and RBOB gasoline prices that recently have fallen by 13.51 cents/gal from the $1.5135 mark on July 1. RBOB gasoline settled at $1.3784/gal Wednesday.
But demand from the chemical sector has been stronger of late because of some flows of derivative paraxylene from the US to Asia, a source said. This has underpinned spot MX prices.
Still, market participants expect overall demand to be slow in the short term and they also have a bearish take for the remainder of 2016. They do not expect much strength from gasoline blending for the rest of the summer driving season, and the US mixed xylene market is typically weaker during the fourth quarter, sources have said.
