China mixed xylenes imports see decline in H1 2024

In Jan-Jun 2024, China imported about 533.8kt of mixed xylenes, down by 30.7% from 770.9kt in the same period last year, data from China Customs show.

The reduction of MX imports was mainly due to several reasons. Firstly, China domestic production increased in the first half year, with new reformers and crackers starting. Secondly, due to consumption tax on mixed aromatics effective since last year, some refineries based in Shandong separated mixed aromatics into toluene and MX for sale. Thirdly, gasoline blending demand in summer had picked up since 2022, and MX exports from South Korea to the US increased sharply this year. Therefore, the supplies to China reduced. And lastly, some PX units in China, purchasing imported MX goods, underwent maintenance in the first half of 2024, and thus the requirement for imported MX decreased.

China domestic MX production averaged 2.56 million tons per month in the first half of 2024, up from 2.33 million tons per month in the first half of 2023.

In terms of exports from South Korea, the country exported about 560kt of MX in H1 2023, and 575kt in H1 2024, little changed from the year earlier. However, its export quantity to the US surged from 76kt to 210kt in the first half year. As a result, the goods to China reduced, as nearly half of China's MX imports came from South Korea.

China PX plant operating rate maintained high in Jan and Feb 2024, and MX imports kept large in that period. Afterwards, however, MX imports decreased gradually, as PX plant operating rate moved lower amid plant turnarounds in Apr and May. In Apr, in particular, PX operating rate declined from high point of 87% in end-Mar to 67% in late Apr. Some PX units such as Zhongjin, Hengli and Fuhaichuang, purchasing imported MX, underwent maintenance during turnaround season. As a result, MX imports declined.