According to the Commodity Market Analysis System of Shengyi Society, the mixed xylene market has seen a slight increase in recent days (7.12-7.19). On July 19th, the benchmark price of mixed xylene was 7840 yuan/ton, an increase of 0.13% from 7830 yuan/ton on July 12th. This week, the mixed xylene market experienced mixed ups and downs, but the overall volatility was limited. Prices in the South China region decreased by about 50-100 yuan/ton, while prices in the East China and Shandong regions slightly increased by 10 yuan/ton. During the week, the port inventory in East China was low, and the supply of xylene in Shandong slightly declined. With the support of tight supply, the market price slightly increased. However, due to the overall increase in inventory within the region, the market atmosphere in southern China is slightly weak, and market prices are generally declining.

Cost side: Crude oil analysts from Shengyi Society believe that the short-term supply and demand game of crude oil will continue to play a role, and the supply side will be supported by the geopolitical situation and OPEC’s production control. There is uncertainty on the demand side in the future, and in the short term, there will be some pressure on demand due to extreme weather conditions in the United States; In addition, the condition during peak driving season still needs further inspection. In the later stage, it is necessary to pay attention to further developments in the Federal Reserve’s interest rate policy, which will provide directional guidance for the future demand for crude oil. Overall, under the influence of both supply and demand, oil prices will continue to maintain a range oscillation pattern, and the amplitude may increase with the frequent occurrence of market news factors. As of July 19th, international crude oil futures have plummeted. The settlement price of the main contract for WTI crude oil futures in the United States was $78.64 per barrel, a decrease of $2.66 or 3.3%. The settlement price of the main Brent crude oil futures contract was $82.63 per barrel, a decrease of $2.48 or 2.9%.

Supply side: As of July 19th, Sinopec’s xylene quotation is stable, the company is operating normally, the production of the equipment is stable, the production and sales are stable, and the company’s quotation is the same as the previous day. Among them, the East China Company quoted 7900 yuan/ton, the North China Company quoted 7800 yuan/ton, the South China Company quoted 7950-8000 yuan/ton, and the Central China Company quoted 7700 yuan/ton.

Demand side: According to the Commodity Market Analysis System of Shengyi Society, the price trend of phthalic anhydride in the domestic phthalic anhydride market has fallen this week. As of July 19th, the price of phthalic anhydride in the phthalic anhydride process was 8075 yuan/ton, a slight decrease of 0.15% from the price of 8087.50 yuan/ton on July 12th. Domestic neighboring phthalic anhydride is priced at 7800-8100 yuan/ton before leaving the factory, while domestic naphthalene phthalic anhydride is priced at 7450-7550 yuan/ton before leaving the factory. The operation of domestic phthalic anhydride plants is temporarily stable, with a production rate of about 60%. The spot supply of phthalic anhydride is stable, and the sales situation of phthalic anhydride manufacturers is average. This week, the price of industrial naphthalene fluctuated slightly and fell, and the naphthalene phthalic anhydride market fell. The ortho benzene market stabilized, and the cost support led to a slight decline in the ortho benzene phthalic anhydride market.

As of Friday (July 19th), the Asian xylene market closed down, with FOB Korea closing at $906-908/ton in August, a decrease of $6/ton; In August, CFR China closed at $932 per ton, a decrease of $6 per ton.

Market forecast: The fundamentals of the crude oil market still have support, oil prices will continue to maintain a range oscillation pattern, and cost support still exists. The tight supply situation in Shandong region will continue for some time, but currently downstream procurement enthusiasm is weak, and the market atmosphere is wait-and-see. In the near future, some goods from the East China region will arrive at the port, and the tight supply situation will be improved to some extent. However, the market atmosphere in the southern region of China is significantly weak, and overall, the atmosphere in the xylene market is weak. It is expected that prices will remain stable and weak in the short term.