According to the Commodity Market Analysis System of Shengyi Society, the mixed xylene market fluctuated and rose from December 16 to December 23, 2024. On December 16th, the benchmark price of mixed xylene was 6030 yuan/ton, an increase of 1.33% from 6110 yuan/ton on December 23rd. This 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, this week’s favorable supply side has boosted the overall strength of the market, but lacks downstream support, resulting in insufficient momentum for the market to continue rising.

Cost aspect: Currently, the crude oil market is mixed with bearish factors, and geopolitical instability continues to affect the market. The protection of OPEC+production reduction atmosphere still exists, but the pessimistic demand will still suppress oil prices. Overall, the international crude oil market is mainly volatile. As of December 20th, the settlement price of the main international crude oil futures contract was $69.46 per barrel, an increase of $0.08 or 0.1%. The settlement price of the main Brent crude oil futures contract was $72.94 per barrel, an increase of $0.06 or 0.1%.

Supply side:

On December 20th, Sinopec’s xylene quotation summary showed that the company is currently operating normally, with stable production and sales. The company’s quotation remains unchanged from the previous day. As of December 20th, East China Company quoted 6200 yuan/ton, North China Company quoted 5950 yuan/ton, South China Company quoted 6150-6200 yuan/ton, and Central China Company quoted 5870 yuan/ton.

On the demand side, the external market for xylene has slightly rebounded, and demand support is still acceptable

On December 23rd, the price of xylene in the petrochemical sales company was temporarily stable, with a current execution price of 7150 yuan/ton. This price was implemented in East China, North China, Central China, and South China. Yangzi Petrochemical, Zhenhai Petrochemical and other units operated stably and sold normally, with prices unchanged from December 16th. The PX price continued to decline both inside and outside the cycle. As of December 20th, the closing prices of the Asian xylene market were $805-807/ton FOB Korea and $830-832/ton CFR China, an increase of $25/ton compared to December 13th.

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