According to the Commodity Market Analysis System of Shengyi Society, the mixed xylene market trend slightly rebounded from November 18 to 25, 2024. On November 18th, the benchmark price of mixed xylene was 5830 yuan/ton, an increase of 0.68% from 5860 yuan/ton on November 25th. This week, the xylene market experienced a narrow range of fluctuations, with downstream companies releasing some demand for replenishment of essential stocks, driving an improvement in the atmosphere of spot market negotiations. The overall market rebounded slightly this week, but the magnitude was limited.

Cost wise: As of November 21st, the settlement price of the main contract for WTI crude oil futures in the United States was $70.10 per barrel. The settlement price of the main Brent crude oil futures contract is $74.23 per barrel. This week, international oil prices fluctuated and rose. As of the 19th, the settlement price of the main contract for WTI crude oil futures in the United States was $69.39 per barrel, and the settlement price of the main contract for Brent crude oil futures was $73.31 per barrel. During this cycle, crude oil prices have fluctuated widely, with little overall change. On the one hand, OPEC’s production reduction plan of 2.2 million barrels per day has been extended until the end of December, which is good news for international oil prices. On the other hand, weak demand in China, India, and other regions has led to continued concerns in the market about demand, which is bearish for the oil market. The recent geopolitical situation remains one of the important factors affecting the crude oil market.

Supply side: During this cycle, Sinopec’s xylene quotation has been partially raised. Currently, the company is operating normally, with stable production and sales. The company’s quotation remains unchanged from the previous day. As of November 25th, East China Company quoted 5850 yuan/ton, North China Company quoted 6000 yuan/ton, South China Company quoted 5950-6050 yuan/ton, and Central China Company quoted 5900 yuan/ton.

Demand side: The external market for xylene continues to decline, and demand support is weak

On November 25th, Sinopec Sales Company temporarily stabilized the price of xylene, with the current execution price of 7300 yuan/ton. This price is being implemented in East China, North China, Central China, and South China. Yangzi Petrochemical, Zhenhai Petrochemical and other facilities are operating stably, with normal sales, and the price is unchanged from November 18th. The PX price continued to decline both inside and outside the cycle. As of the closing of the Asian xylene market on November 22, the closing prices were 786-788 US dollars/ton FOB Korea and 811-813 US dollars/ton CFR China, a decrease of 16 US dollars/ton compared to the same period last week.

Market forecast: The crude oil market trend is volatile, with limited guidance for the spot market. In terms of supply, the inventory of refineries in Shandong region has been low recently, and port inventory has also been operating at a low level, resulting in less supply pressure. On the demand side, downstream procurement intentions are biased towards rigid demand. Overall, there are still favorable supply and demand conditions, and it is expected that the market will rebound slightly in the short term.