Ortho-xylene, a key aromatic intermediate used primarily in phthalic anhydride production and downstream plasticisers, coatings, and polyester resins, has demonstrated a sustained volatility pattern over the period from June 2024 to January 2026. This review analyses price movements in major Asian trade benchmarks FOB South Korea, CFR Southeast Asia (SEA), and CFR China reflecting broader demand supply dynamics, regional consumption trends, feedstock economics, and seasonal influences.

1. Price Erosion Through 2024 (June–December)
In June 2024, ortho-xylene prices were relatively elevated despite ongoing inventory corrections in the petrochemical sector:

  • FOB South Korea: $1,100/MT
  • CFR Southeast Asia: $1,140/MT
  • CFR China: $1,090/MT

However, from June to December 2024, ortho-xylene experienced a steady and pronounced decline across all the regions. By December 2024, contracts softened sharply as a result of wider supply availability, softening derivative demand (notably from phthalic anhydride and downstream plasticisers), and tepid end-market consumption:

  • FOB South Korea: $822/MT
  • CFR Southeast Asia: $851/MT
  • CFR China: $842/MT

This represented a 20-26 per cent decline in spot value over six months, indicating significant bearish pressure on the aromatic intermediate market throughout late 2024. The decline was most pronounced in export-linked benchmarks (CFR Southeast Asia and CFR China), driven by weaker feedstock economic particularly softer reformate and mixed xylene price alongside prolonged inventory turnover.

2. Temporary Upswing Early 2025 Recovery (December 2024–March 2025)
Entering early 2025, the market exhibited a modest rebound, largely driven by seasonal demand strengthening, inventory restocking ahead of Chinese New Year festivities, and anticipated pre-holiday consumption. By March 2025, prices had recovered from their December lows:

  • FOB South Korea: $962/MT
  • CFR Southeast Asia: $930/MT
  • CFR China: $932/MT

This resurgence roughly 10-17 per cent upwards from December 2024 reflects cyclic demand upticks in key consumption regions, particularly China, where downstream textile, resin, and plasticiser sectors often ramp up operations ahead of holiday intervals. However, despite this rise, prices remained below mid-2024 peaks, indicating that the recovery was moderate and largely seasonal rather than structural.

3. Renewed Downtrend Into 2026 (March 2025–January 2026)
After peaking in March 2025, ortho-xylene prices began edging lower again. By December 2025 and January 2026, all major price indicators had moved downward, driven by several factors:

  • Softening end-market demand after the seasonal peak
  • Persistent inventory overhang in key hubs
  • Modest feedstock cost pressures re-emerging downstream
  • Slower import uptake in China and Southeast Asia

Final observed prices in November 2025 were:

  • FOB South Korea: $763/MT
  • CFR Southeast Asia: $748/MT
  • CFR China: $728/MT

This continued descent positioned ortho-xylene back near its late-2024 trough levels, translating into another sharp contraction of about 20-22 per cent from the March 2025 uptick. The CFR China marker showed the softest relative performance likely a reflection of weaker regional absorptive capacity and competitive local supply dynamics.

Ortho-Xylene Market Outlook for 2026
The ortho-xylene market in 2026 is expected to be shaped by short-term bullish momentum, driven by seasonal demand and tightening near-term supply, followed by periods of consolidation as supply responses and downstream demand normalisation take effect. Overall, the market is likely to remain volatile but fundamentally supported, rather than structurally weak.

Short-Term Outlook (Early 2026): Bullish Bias Amid Seasonal Demand
Entering early 2026, ortho-xylene prices are projected to remain on an upward trajectory, supported by multiple overlapping factors:

  • Seasonal Demand Strength: Downstream industries such as phthalic anhydride, plasticisers, coatings, and resins typically increase operating rates in the first quarter, driven by post-holiday production restarts and pre-peak season stocking.
  • Inventory Replenishment: Buyers are expected to rebuild inventories following cautious procurement in late 2025, adding momentum to spot market demand.
  • Feedstock Tightness: Limited availability of mixed xylenes and cautious refinery operating rates may restrict ortho-xylene supply in the short term, amplifying price sensitivity to incremental demand.
  • Derivative Price Support: Firm pricing in phthalic anhydride and related downstream products is likely to strengthen cost pass-through dynamics, supporting higher ortho-xylene realisations.

As a result, the market is expected to experience short-term price surges, particularly during Q1 and early Q2 2026.

Mid-2026 Outlook: Stabilisation After Seasonal Peak
Following the seasonal demand high, the ortho-xylene market is likely to enter a stabilisation phase:

  • Demand normalisation: Once restocking cycles are completed, downstream buyers may shift to hand-to-mouth purchasing, reducing aggressive spot buying.
  • Supply Adjustment: Producers may respond to earlier price strength by increasing operating rates or redirecting mixed xylene streams toward ortho-xylene production, easing supply tightness.
  • Margin Sensitivity Downstream: If end-use demand for plasticisers and construction-linked products remains moderate, downstream producers may resist further price increases, limiting upside.

During this phase, prices are expected to consolidate within a narrower range, rather than extending the earlier rally.