According to the Commodity Market Analysis System of Shengyi Society, the overall trend of mixed xylene market has been declining recently (9.9-9.18). On September 9th, the benchmark price of mixed xylene was 6360 yuan/ton, a decrease of 2.04% from 6230 yuan/ton on September 18th. The mixed xylene market continued to operate weakly in this cycle, with market prices experiencing a wide decline. As of September 18th, the mainstream price range for xylene in the East China region was 6200-6250 yuan/ton, a decrease of 150 yuan/ton compared to the same period last week. The crude oil market continued to decline during the week, dragging down market sentiment. Sinopec’s listing prices and refinery prices in various regions have been continuously lowered, and the current market atmosphere is weak. On the demand side, we will continue to make essential purchases this week. However, there is insufficient demand for oil products, and the focus of negotiations is relatively low, which has dragged down market quotations.

Cost aspect: During this cycle, the crude oil market first fell and then rose. In September, the crude oil trend sharply declined, and the geopolitical situation in the Middle East affected the crude oil market trend. The easing of the situation at the beginning of the month led to a significant decline in the crude oil market; Since September, there have been concerns about the future demand for crude oil market, which has led to a continuous decline in the oil market; Finally, due to the rise in US crude oil inventories and negative factors, the overall crude oil market prices have significantly decreased. As of September 17th, international crude oil futures have risen. The settlement price of the main contract for WTI crude oil futures in the United States was $71.19 per barrel, an increase of $1.10 or 1.6%. The settlement price of the main Brent crude oil futures contract was $73.01 per barrel, an increase of $0.86 or 1.2%.

Supply side: During this cycle, most of Sinopec’s xylene quotations have been lowered. Currently, the company is operating normally, with stable production and sales. The company’s quotations remain unchanged from the previous day. As of September 18th, East China Company quoted 6100 yuan/ton, North China Company quoted 6300-6350 yuan/ton, South China Company quoted 6300-6400 yuan/ton, and Central China Company quoted 6150 yuan/ton.

Demand side: The phthalic anhydride and xylene markets are operating weakly

According to the Commodity Market Analysis System of Shengyi Society, as of September 13th, the price of phthalic anhydride produced by phthalic anhydride was 7362.50 yuan/ton, a decrease of 1.34% from the price of 7462.50 yuan/ton on September 6th. This week, the price of ortho xylene was quoted at 7400 yuan/ton, a decrease of 300 yuan/ton or 3.90% compared to last week. The cost of phthalic anhydride has decreased, and the phthalic anhydride market has declined. This week, the domestic price for ortho phthalic anhydride is 7200-7400 yuan/ton, while the domestic price for nano phthalic anhydride is 7100-7200 yuan/ton.

On September 18th, Sinopec Sales Company implemented a price of 7800 yuan/ton for xylene, which remained unchanged from the price on September 9th. The PX price continued to decline both inside and outside the cycle, with CFR China closing at $834-836/ton as of September 17, a cumulative decrease of $31/ton from $865-867/ton on September 8.

Market forecast: The cost side crude oil market has been weak recently, and the overall market environment is bearish. The recovery of the crude oil market during the Mid Autumn Festival holiday will provide some boost to the market. Recently, the supply in the Shandong market has been relatively stable, with refineries showing a stronger willingness to raise prices. The inventory in the East China market has slightly declined, and the overall market supply is relatively stable. The demand side has recently shown weak performance, with demand being more rigid and the market mentality being more cautious. There will be a certain release of replenishment demand in the downstream near the holiday. It is expected that the overall market trend will be stable in the short term, with slight fluctuations. The focus will be on pre holiday stocking in the future.