Domestic price trend of xylene:

According to the Commodity Market Analysis System of the Business Society, the price trend has temporarily stabilized this week. As of the weekend, the domestic factory price of paraxylene was 9100 yuan/ton, which is the same as the price of 9100 yuan/ton at the beginning of the week, with a year-on-year increase of 1.11%.

The domestic supply of paraxylene is normal, with a domestic PX operating rate of over 70% and a relatively normal spot supply. This week’s crude oil price trend has declined, and PX’s external market has slightly declined. As of the 17th, the closing prices in the Asian region are 1006-1008 yuan/ton FOB South Korea and 1031-1033 US dollars/ton CFR China. Recently, the operating rate of PX devices in Asia has not changed much. 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 the external price of PX has slightly decreased. The domestic xylene market price situation is temporarily stable.

This week, crude oil prices have slightly declined. As of the 17th, the settlement price of the main contract for WTI crude oil futures in the United States was at $80.39 per barrel, while the settlement price of the main contract for Brent crude oil futures was at $84.12 per barrel. Crude oil has been declining for three consecutive trading days. Recently, due to weak economic data in China, coupled with unstable banking in Europe and America, concerns about global economic growth prospects have put pressure on crude oil, and crude oil prices have continued to decline. However, the decrease in crude oil supply from OPEC and Russia, as well as the improvement in energy demand, have supported oil prices. On Thursday, the crude oil market closed higher, and overall, the crude oil market price slightly decreased. As a result, the domestic xylene market trend has temporarily stabilized.

The downstream PTA market price has slightly declined this week, with an average PTA market price of around 5870 yuan/ton as of the 18th. The price has slightly declined by 0.71% this week. PTA supply has increased, with the PTA operating rate rising to around 83.5% this week. PTA factory inventory has slightly increased, and PTA market prices have slightly declined. Downstream polyester is mainly in need of restocking, and demand end textile enterprises have staged restocking actions. However, with the arrival of the high temperature season, textile and clothing consumption is in the off-season stage, with insufficient terminal orders. The Jiangsu and Zhejiang weaving start-up rate is around 63%, and downstream PTA market prices are fluctuating and decreasing, while PX price trends are temporarily stable.

Business Society PX analyst Chen Ling believes that the current oil market is a long short game, with crude oil prices maintaining a high level in the short term. However, the downstream PTA market trend is fluctuating and declining, coupled with weak demand follow-up in the textile industry, with on-demand procurement being the main focus. Overall, it is expected that the price trend in the xylene market will be stable in the later stage.