Asian PX prices hit lowest in 2025 as tariff announcements hurt market sentiment

Prices of Asian paraxylene crashed to the lowest so far in 2025, with an even steeper drop expected in the days ahead as the recent announcement of trade tariffs by the US bruises demand cues for downstream PTA and polyester markets, according to sources.

The announcement of new US tariffs roiled commodity markets, with more pain expected in the days ahead, traders said.

At the Asia close on April 7, Platts, part of S&P Global Commodity Insights, assessed Asian paraxylene down $68/mt day over day at $735/mt CFR Taiwan/China, the lowest in 2025 so far, as well as the lowest since Feb. 3, 2021, when prices were assessed at $727.67/mt.

"It's all about tariffs. The market seems [to be in a] panic," a trader in China said.

The rout was visible when upstream crude prices moved below the $70/b mark and continued to slide even further, the trader said.

Traders and producers in Asia were concerned the impact of tariffs would be felt on downstream PTA and polyester markets.

"I believe this will significantly suppress the demand for polyester. The impact [of tariffs] is serious, even the possibility of [an] economic crisis [cannot be ruled out]," a second Chinese trader said.

Downstream demand in trouble

Downstream polyester demand, especially in the domestic markets, has been struggling for months, according to sources.

Domestic consumption has remained weak over the past several months as consumers turn increasingly wary of spending on the back of a bleak economic outlook.

To combat the pressure of weak demand, PX, purified terephthalic acid and polyester producers have tried to fight back by curbing supplies through run cuts and turnarounds.

PX and PTA plant operation rates have been moving lower, reflecting the curb in production, a broker in China said.

"We are on turnaround soon," a PX producer in Southeast Asia said referring to short-term plans to deal with the tariff news.

In the week to April 3, PX plant operation rates in China were at 74.4%, compared to 78.2% the previous week, while PTA plant operation rates moved down to 79.2% from 79.9%.

But after the tariff announcement, supply side measures aiming to offer support to spot prices have been largely blunted, traders said.

"PTA [futures] is down, everything is limit stopped right now. All sells, no buys [so] can't drop any further for now," a trader in Singapore said, referring to futures prices at their lowest level.

Recent supply cuts in China and South Korea were of little help, as the tariff announcement has hurt the market a lot worse, a third Chinese trader said.

The Asian chemical markets may be gearing up for a potential churn in trade flows as well, the trader further noted.

"South Korean aromatics [producers] want to export to China, can't go to the US. China's direct polyester and textile exports, as well as transit channels, may be closed," the trader said.

Market participants remain on the edge as the tariff tensions pan out, with hopes running high of a pullback in some of the harsher levies, which in turn could help cool tensions across Asia, sources said.

"I'm still watching today. We should wait until [April 9] to see if the tariffs really go into effect," the third Chinese trader added.

Blendstocks hit as well

Asian blendstocks prices fell on April 4 with tumbling upstream prices in reaction to the steep new US tariffs on several Asian countries.

Platts assessed the MTBE FOB Singapore marker down $44.16/mt day over day at $679.60/mt, hitting its lowest price since Aug. 23, 2021.

However, the tariff-related impact on MTBE may be more muted than other blendstocks, as the US does not utilize MTBE in blending domestically. Some Chinese exporters are eying opportunities to sell more MTBE to South American buyers if the importing countries impose reciprocal tariffs on US MTBE exports, sources said in the week ended April 6.

In the case of isomer mixed xylenes, it does seem likely that Asian exports may avoid the latest round of reciprocal tariffs as MX under HS code 270730 is exempted under Annex 2 of the executive order published by the White House on April 3, where South Korea was slapped with a 26% tariff.

The Platts FOB Korea MX marker fell $19/mt at 709/mt on April 4.