1、 Price trend
According to the data of business club’s block list, the domestic market price of mixed xylene showed an upward trend this week. The price of xylene was 4110 yuan / ton on January 17 and 4160 yuan / ton on this Sunday (January 24), up 50 yuan / ton or 1.22% from last week.
2、 Analysis and comment
Within the week, Sinopec’s mixed xylene increased by 150-200 yuan / ton. At the beginning of this week, xylene market was very strong, the focus of negotiation was pushed up, and the price was pushed up and down near the weekend. In terms of external market, as of January 22, the price of imported xylene from South Korea was 577.5 US dollars / ton, down 5.5 US dollars / ton or 0.94% compared with January 15; the price of imported xylene from East China was 592.5 US dollars / ton, up 1.5 US dollars / ton or 0.25% compared with January 15. This week, the xylene inventory of East China port was about 78000 tons, down 2700 tons compared with last week.
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In terms of crude oil, this week’s crude oil news guidance is weak, and the market hopes that the new US fiscal stimulus plan will be implemented. Compared with January 15, Brent rose by $0.705/barrel, or 1.29%; WTI fell by $0.15/barrel, or 0.29%.
Downstream, PX market, domestic PX prices rose this week compared with last week, Sinopec’s listed price was about 4700 yuan / ton, up 500 yuan / ton compared with last week, up 10.64%, down 24.64% year on year. By the end of the weekend, the closing prices of PX market in Asia were US $671-673 / T FOB Korea and US $689-691 / T CFR China. This week, the trend of PX external price remained high, and about 40% of domestic products needed to be imported. The higher external price brought some positive support to the domestic market.
In terms of PTA market, the price of PTA in East China fell this week, reaching 3841.11 yuan / ton on January 24, down 1.51% from last week and 21.38% from a year earlier. As of January 22, PTA industry operating rate was 91.24%.
In terms of ox market, ox prices remained stable this week, with the price of ox in East China at 4700 yuan / ton. Sinopec’s o-benzene price was temporarily stable, the external quotation fell, the supply of o-benzene was stable, and the downstream market fell as a whole, and the demand was normal. O-benzene transaction weakened, o-benzene market weak temporarily stable.
3、 Future forecast
Xylene analysts from business society chemical branch think: first, look at the supply cost side, the implementation of OPEC + production reduction, the total number of oil drilling platforms in the United States, and weekly EIA and API inventory data. Second, on the demand side, the impact of the global epidemic on crude oil demand, the progress of industrial chain recovery, and the economic and trade situation in Europe and the United States. Third, look at the geopolitical situation in the Middle East, China and the United States, the progress of new technology, the dollar index and stock market linkage.
Affected by the public health incident and the rain and snow weather in the north, some domestic downstream terminal plants are expected to shut down, and xylene market demand is weak. However, xylene market supply is expected to be tight, and prices are expected to remain firm next week. We will continue to pay attention to downstream procurement and the impact of crude oil and external market on xylene prices.
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