According to the Commodity Market Analysis System of Shengyi Society, the mixed xylene market fluctuated and rose from December 9 to December 16, 2024. On December 9th, the benchmark price of mixed xylene was 5910 yuan/ton, up 2.03% from 6030 yuan/ton on December 16th. This week, the xylene market fluctuated upwards, and in the later part of the week, with the strengthening of crude oil prices, the atmosphere in the spot market improved. Refineries in Shandong region raised their ex factory prices, downstream stocks were replenished according to demand, and some transactions were made in the market, boosting the mentality of the spot market. The inventory of ports in East China continues to decline, and the supply expectations in the spot market are relatively tight. With the support of favorable factors, the mixed xylene market as a whole rose this week. However, there is a lack of actual demand support in the future, and there is significant resistance to the market’s continued upward trend.

On the cost side: On the one hand, the geopolitical tension between Russia and Ukraine has escalated, and the United States has announced a new round of sanctions against Russia. In addition, OPEC+may extend its production reduction plan again at the December meeting, and it may be postponed until the second quarter of next year, 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. At present, the bearish factors in the crude oil market are intertwined, and geopolitical instability continues to affect the market. The production reduction plans of oil producing countries may be extended, and overall, international crude oil may maintain a volatile trend. As of December 12th, the settlement price of the main contract for WTI crude oil futures in the United States was $70.02 per barrel. The settlement price of the main Brent crude oil futures contract is $73.41 per barrel.

Supply side: Sinopec xylene quotation summary. Currently, the company is operating normally, with stable production and sales of equipment. The company’s quotation remains unchanged from the previous day. As of December 16th, East China Company quoted 5950 yuan/ton, North China Company quoted 6050 yuan/ton, South China Company quoted 6100-6150 yuan/ton, and Central China Company quoted 5950 yuan/ton.

Demand side: Weak and stable operation of the xylene market with weak demand support

On December 16th, 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, remaining unchanged from the price on December 9th. The PX price continued to decline both inside and outside the cycle. As of December 13th, the closing prices of the Asian xylene market were $780-782/ton FOB Korea and $809-811/ton CFR China.

Market forecast: The crude oil market trend is volatile, with limited guidance for the spot market. Recently, the market supply has been tight, and the atmosphere in the spot market is good. Downstream replenishment is needed to support overall rigid demand. Overall, there are still favorable supply and demand conditions, and it is expected that the market will operate steadily with a moderate to strong trend in the short term.