According to the Commodity Market Analysis System of Shengyi Society, the xylene market saw a slight increase in December 2024. From December 1st to 31st, the domestic xylene market price fell from 5910 yuan/ton to 6110 yuan/ton, with a cumulative price increase of 3.38% during the period.

In the first half of the month, the toluene market fluctuated upwards. In the later part of the week, with the strengthening of crude oil prices, the atmosphere in the spot market improved. Refineries in Shandong region raised their ex factory prices, and downstream companies replenished their inventory according to demand. Some transactions in the market boosted the mentality of the spot market. The inventory of ports in East China continues to decline, and the supply expectations in the spot market are tight. With the support of favorable factors, the mixed xylene market has overall risen this cycle. However, there is a lack of actual demand support in the future, and there is significant resistance to the market’s continued upward trend.

In the second half of the week, the xylene market fluctuated upwards, with refinery inventories in Shandong operating at a low level, and overall ex factory prices rising. The inventory of ports in East China is relatively low this week, and the overall market atmosphere is strong. Traders have a strong reluctance to sell, and the market is holding up prices. But with weak downstream procurement, the downstream’s intention to continue entering the market is slightly lower. Overall, the supply side is boosted by favorable conditions, and the market is generally running strong, but lacks downstream support, resulting in insufficient momentum for the market to continue rising.

Cost wise: The crude oil market has fluctuated and strengthened this month, with prices overall rising during the cycle, driving an improvement in the atmosphere of the spot market. As of December 30th, international crude oil futures have risen, with the settlement price of the main contract for US WTI crude oil futures at $70.99 per barrel. The settlement price of the main Brent crude oil futures contract is $74.39 per barrel.

Supply side: The quotation of Sinopec xylene enterprise has not changed much. Currently, the enterprise is operating normally, the production of the equipment is stable, and the production and sales are stable. As of December 31st, East China Company quoted 6200 yuan/ton, North China Company quoted 6050 yuan/ton, South China Company quoted 6100-6150 yuan/ton, and Central China Company quoted 6000 yuan/ton.

Demand side: Weak support for downward demand in the external market for xylene

On December 28th, the price of xylene in the petrochemical sales company remained stable, currently at 7100 yuan/ton. This price is being implemented in East China, North China, Central China, and South China. The operation of facilities such as Yangzi Petrochemical and Zhenhai Petrochemical is stable, and sales are normal. The PX price continued to decline both inside and outside the cycle. As of December 27th, the closing prices of the Asian xylene market were 795-796 US dollars/ton FOB Korea and 820-822 US dollars/ton CFR China.

Market forecast: The recent trend of the crude oil market is volatile, with limited guidance for the spot market. In terms of downstream demand, there is currently insufficient momentum to continue chasing high demand, and the lack of demand support is expected to weaken the xylene market in the future.