Domestic price trend of xylene:

According to the Commodity Market Analysis System of the Business Society, the price trend has increased this week. As of the weekend, the factory price of xylene in China was 9300 yuan/ton, an increase of 2.20% from the beginning of the week’s price of 9100 yuan/ton, and a year-on-year increase of 5.68%.

The domestic supply of paraxylene is normal, with a domestic PX operating rate of over 70%. However, during the maintenance of some paraxylene units, spot supply is relatively normal, and PX external prices have risen due to the rise in crude oil. As of the 7th, the closing prices in Asia were 1081-1083 yuan/ton FOB Korea and 1106-1108 US dollars/ton CFR China. Recently, the operating rate of PX devices in Asia has been mainly fluctuating. Overall, the operating rate of xylene devices in the Asian region is around 70%. The supply of PX goods in the Asian region has not changed much, and due to the rise in crude oil prices, the domestic xylene market price has risen.

This week’s crude oil price trend has risen, with the settlement price of the main contract for WTI crude oil futures in the United States reaching $86.87 per barrel as of the 7th, and the settlement price of the main contract for Brent crude oil futures reaching $89.92 per barrel. Recently, there have been rumors of OPEC+extending production cuts in oil producing countries. The market expects an additional 1 million barrels of production reduction in Saudi Arabia to continue until December, while Russia’s crude oil production reduction will continue until December. Supply tightening is expected to continue to ferment and boost the oil market; In addition, the weakening of the US dollar has led to a rebound in oil market valuations and the potential impact of storms in the US Gulf on energy supply. Positive factors support international oil prices, which has affected the upward trend of the domestic xylene market.

This week, the downstream PTA market price fluctuated at a high level, with an average PTA market price of around 6200 yuan/ton as of the 8th. The price has not changed much this week. PTA supply has slightly increased, with PTA operating rates maintaining around 83% this week. PTA factory inventory has slightly declined, and PTA market prices remain high. The peak season of textile demand is approaching, and the market still has expectations for demand. However, the procurement of terminal textile enterprises has not shown the enthusiastic situation before the peak season, especially in the context of uncertain export demand for textile clothing. The actual boost still needs to be observed. The downstream PTA market has a high price, while PX prices have slightly increased.

Chen Ling, an analyst at Business Society PX, believes that the current long short game in the crude oil market has led to a strong trend in crude oil prices in the short term, while the downstream PTA market remains at a high level. In addition, the peak season for textile demand is approaching, but the demand for textile exports is uncertain. Overall, it is expected that the price trend in the xylene market will remain stable in the later stage.