Price trend

According to the commodity price analysis system of SunSirs, the xylene market fluctuated upwards in January 2026. From January 1st to 30th, the domestic xylene market price rose from 5,510 RMB/ton to 5,710 RMB/ton, representing a cumulative increase of 3.63% during the period.

This month, the domestic xylene market showed a phased upward trend with fluctuations. At the beginning of the month, supported by the stabilization and recovery of the crude oil market and the strong performance of PX futures, market sentiment was positive. Refineries in the core production area of Shandong experienced smooth sales, and the markets in East and South China followed suit with price increases. Major refineries steadily raised their prices, and market negotiations were active. Although PX futures experienced a short-term correction in the middle of the month, leading to a slight wait-and-see attitude in the market and some price fluctuations, the support from crude oil costs remained, and refineries showed a strong willingness to maintain prices, preventing a significant price drop. Towards the end of the month, with the recovery of the petrochemical industry and the upward trend in international market prices, the domestic market trading atmosphere heated up again. Manufacturers continued to raise their prices, and prices in various regions rose simultaneously, pushing prices to a new high for the month. Downstream oil blending and chemical industries showed improved purchasing sentiment compared to the previous month. Although purchasing was still mainly based on demand, inventory replenishment activity increased, and phased stockpiling provided actual support for the upward trend in market prices.

Market analysis

Cost Side

This month's market trend showed distinct phases, with an initial surge followed by a pullback after encountering resistance, but overall prices remained at high levels. At the beginning of the month, supported by tight supply, rising international prices, and expectations of pre-holiday stocking by downstream industries, the market experienced a strong upward trend. Companies showed a strong willingness to maintain high prices, and quotations were repeatedly raised, leading to a rapid price surge. In the middle of the month, driven by the strong performance of downstream synthetic rubber futures and a heated spot market trading atmosphere, prices continued to reach new highs, with tight spot resources and scarce low-priced goods. Towards the end of the month, as prices rose sharply, downstream raw material cost pressure increased significantly, profits remained under pressure, and the enthusiasm for market purchases declined noticeably. High-priced transactions encountered resistance, and the market experienced a temporary pullback. However, due to the lack of significant easing in supply, the pullback was limited, and overall prices remained at high levels, resulting in a substantial price increase during the month. As of the 28th, the settlement price of the March WTI crude oil futures contract was $63.21 per barrel. The settlement price of the April Brent crude oil futures contract was $67.37 per barrel.

Supply side:

In January, domestic xylene production facilities operated stably overall. Major plants such as those of Yangzi Petrochemical and Zhenhai Petrochemical operated normally, with smooth production and sales, resulting in ample overall supply in the industry. Refineries under Sinopec generally increased their prices compared to the previous month, and refineries in the core production area of Shandong experienced good sales, providing stable support for rising regional market prices. This month, there were no significant maintenance or production cuts in the domestic xylene market. Companies maintained a steady production pace, and although prices continued to rise, manufacturers faced little pressure to sell, maintaining a firm pricing stance and supporting a steady increase in market prices.

Sinopec's xylene price summary: As of January 30, operations were normal, production facilities were stable, and sales wee steady. Company prices remained unchanged from the previous day. As of January 30th, the East China company's price was 5,800 RMB/ton, the North China company's price was 5,400-5,600 RMB/ton, the South China company's price was 5,900 RMB/ton, and the Central China company's price was 5,400-5,700 RMB/ton.

Demand side:

According to SunSirs' commodity price analysis system, as of January 29th, Sinopec Sales Company's p-xylene price remained stable, with the price at 7,300 RMB/ton. This price was uniformly applied across the four major regions of East China, North China, Central China, and South China. Major production facilities such as those of Yangzi Petrochemical and Zhenhai Petrochemical were operating stably, and product sales are normal. Furthermore, the price had increased by 300 RMB/ton compared to December 30th.

In the international market: As of January 28th, the closing price of paraxylene (PX) in the Asian market was US$898-900/ton FOB South Korea and US$923-925/ton CFR China, an increase of US$31/ton compared to the end of last month. The strengthening PX market boosted the overall sentiment in the domestic aromatics sector. The PX futures contract on the Zhengzhou Commodity Exchange also rose, with the 2603 contract closing at 7,392 RMB/ton, an increase of 184 RMB/ton compared to the end of last month, providing positive momentum for the toluene market.

Domestic demand in the oil blending and chemical industries showed a pattern of initial strength followed by weakness this month. In the first ten days, influenced by the approaching Spring Festival holiday, downstream industries such as coatings, dyes, and pharmaceutical intermediates began pre-holiday inventory replenishment, leading to a marginal increase in procurement volume and becoming a significant driving force behind price increases. However, after the completion of this temporary inventory replenishment in the middle and latter parts of the month, downstream industries reverted to a needs-based procurement strategy, and no further concentrated inventory replenishment occurred. The oil blending sector maintained just-in-time procurement, limiting its further impact on prices. Towards the end of the month, market trading activity weakened, which was the main reason for the slight price correction. Overall, although there was no significant increase in demand this month, the temporary support provided by pre-holiday inventory replenishment still provided strong support for the rise in toluene prices.

Summary and Outlook:

As of January 30, positive factors dominated the domestic xylene market, with bulls clearly having the upper hand in the supply-demand dynamics: on the one hand, the stabilization and recovery of the crude oil market continuously strengthened cost support, and the upward trend in the PX market continued to have a ripple effect. Domestic supply remained stable, and manufacturers were firm in their pricing intentions, providing fundamental support to the market; on the other hand, the refining and chemical industry was recovering, and the marginal improvement in downstream demand was expected to continue. Coupled with the upward trend in international market prices, market sentiment was generally positive. Overall, the xylene market still has upward momentum in the short term and is expected to maintain a volatile but generally stronger trend. Key factors to watch include crude oil market trends, PX futures price fluctuations, and actual downstream demand.

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