1、 Price trend

The domestic xylene market fell slightly this week. As of Friday, the domestic average price was about 3520 yuan / ton, down 1.12% month on month.

2、 Analysis and comment

Xylene prices fell slightly this week. Sinopec’s enterprises in North China, East China and central China will lower the listed price of toluene by 50-100 yuan / ton this week. Port inventory decreased slightly. As of the end of this week, the port inventory in East China was about 125000 tons, with a month on month decrease of about 2000 tons compared with last week. The pressure to remove the warehouse still exists, and the price is slightly weak in the near future. Market oversupply, downstream Px, gasoline blending demand has weakened, and the long holiday is approaching, the market is slightly cautious. At present, the mainstream price in East China is about 3500 yuan / ton. The future market continued to pay attention to the fluctuation of the US dollar index and the stock market, the impact of the geopolitical situation in the Middle East on crude oil supply, the development of new crown vaccine, the impact of economic restart and recovery on crude oil demand, the global economic recovery and the progress of the European and American economic recovery rescue plan.

Upstream, in terms of crude oil, the second outbreak of the global epidemic is worrying about the decline in energy demand and the difficulty in digesting the new supply of OPEC +. This week, international crude oil prices are under pressure. As of Friday, spot Brent fell $1.435/barrel to close at $41.055/barrel, down 3.38% from last week.

Downstream, in terms of PX market, the listing price of Sinopec’s enterprises this week was about 4600 yuan / ton, and that in East China was about 4230 yuan / ton. The latest external price is about 526 USD / T FOB Korea and 544 USD / T CFR China. PX market is expected to maintain a stable trend in the short term. In terms of PTA market, the market price fell this week. The domestic PTA spot market price is about 3400 yuan / ton, and the external price is about 439 US dollars / ton CFR China. It is expected that PTA price will continue to decline next week. In terms of ox market, Sinopec quoted 4400 yuan / ton of o-benzene, and the external price of o-benzene was about 530 US dollars / ton FOB Korea and 550 US dollars / ton CFR China. It is expected that the price of o-benzene will continue to decline next week.

3、 Future forecast

Xylene analysts of the chemical branch of the business society think: first look at the supply cost side, the implementation of OPEC + production reduction, the total number of us oil drilling and EIA, API inventory data. Second, on the demand side, the impact of the second outbreak of global epidemic on crude oil demand, the progress of industrial chain recovery, the geopolitical situation in the Middle East and China, and the economic and trade situation in Europe and the United States. Third, look at the dollar index and stock market linkage. Next week, we will focus on the progress of a new round of stimulus measures in the United States, as well as the impact of dollar index and stock market volatility on the trend of crude oil. Generally speaking, xylene prices in the domestic market are expected to be weak and stable next week due to the approaching of long holidays and light trading.