According to the commodity market analysis system of SunSirs, the xylene market experienced a slight uptick last week. The benchmark price stood at 6,765.75 RMB/ton on May 15, 2026, rising to 6,977.67 RMB/ton by May 22—a gain of 3.13% over the period.

Last week, the domestic xylene market exhibited an upward trend, driven by the combined effects of strengthening cost support and a moderate recovery in demand. Market trading activity gradually intensified, and the overall price level continued its upward shift. Refineries demonstrated a stronger inclination to hold firm on pricing, spot market supply tightened, and downstream buyers showed increased enthusiasm for replenishing inventories on an as-needed basis; these multiple bullish factors collectively propelled the market upward.

Cost Perspective: Crude Oil Fluctuated Upward; Naphtha Strengthened

Last week, cost-side support for xylenes strengthened significantly. Following a slight pullback in international crude oil prices at the start of the week, prices rebounded amidst fluctuations—driven by recurring geopolitical tensions in the Middle East and expectations of declining global crude oil inventories. This upward trend in crude oil subsequently propelled Asian naphtha prices higher in tandem, shifting the overall cost center of the aromatics industry chain to a higher level. As feedstock costs rose, refineries saw their production costs increase; consequently, ex-factory quotations were continuously raised, reflecting a strong sentiment to hold firm on pricing. As of May 21, the settlement price for the July contract of U.S. WTI crude oil futures stood at $96.35 per barrel, while the settlement price for the July contract of Brent crude oil futures was $102.58 per barrel.

Supply Side:

Last week, domestic supply of xylenes remained generally tight. Operations at major state-owned refineries and independent refineries in Shandong province remained stable; however, some refineries—citing previously low profit margins—proactively restricted their sales volumes, resulting in a week-on-week decline in market-circulating supplies. While there were no large-scale facility shutdowns for maintenance during the week, a few individual refineries temporarily reduced their operating loads, further tightening regional supply. Regarding inventories, xylene stocks at ports in East China remained at a low level of 80,000–90,000 tons, showing a slight week-on-week drawdown. With spot market liquidity tight, traders exhibited a clear reluctance to sell, and their price quotes continued to trend upward in tandem with the market. Domestic refinery inventories also remained at low levels, with sales paced in a controlled manner; consequently, the market faced no significant inventory pressure, providing strong support for prices.

Demand Side:

Last week, downstream demand for xylenes improved sequentially, with the release of essential demand gaining momentum. Operating rates within the core downstream PX sector remained steady at approximately 78%, maintaining stable procurement volumes for xylenes. Demand within solvent-related sectors—such as paints, inks, and adhesives—gradually recovered; with an uptick in end-user orders, companies demonstrated increased enthusiasm for replenishing inventories on an as-needed basis. Furthermore, demand from the fuel blending sector remained stable, while export orders to Southeast Asia increased sequentially; weekly export volumes reached approximately 5,000–7,000 tons, effectively absorbing domestic supplies, alleviating pressure from local oversupply, and providing an indirect boost to prices.

According to the commodity market analysis system of SunSirs, domestic PX quotations remained stable from May 15 to May 22. Sinopec Sales Company maintained a steady ex-factory price for PX at 9,900 yuan per ton, a rate uniformly implemented across the East, North, Central, and South China regions. Major production facilities—such as those at Yangzi Petrochemical and Zhenhai Petrochemical—operated smoothly, and overall shipment activity proceeded at a normal pace.

In the international market, Asian PX external prices have weakened in tandem. On May 14, the Asian paraxylene market closed at $1,172–$1,174/ton FOB Korea and $1,197–$1,199/ton CFR China; as of May 21, the market closed at $1,158–$1,160/ton FOB Korea and $1,179–$1,181/ton CFR China, reflecting a slight downward trend in the external market.

Market outlook

Based on a comprehensive analysis of current market fundamentals, the domestic xylene market is expected to maintain a pattern of strong, volatile trading next week. The probability of drastic price fluctuations—either up or down—remains low, while the overall upside potential is projected to expand only moderately. Currently, cost-side support remains robust; international crude oil prices are highly likely to continue fluctuating at elevated levels, and firm naphtha prices will persist in providing a floor for the market. Furthermore, the prevailing market conditions—characterized by tight supply, low port inventories, and traders holding back stock to support prices—provide a solid foundation for price appreciation. However, as prices continue their upward trajectory, downstream enterprises are becoming increasingly cautious about purchasing at high levels; their reluctance to chase rising prices will, to some extent, limit the magnitude of further market gains. Additionally, once refinery margins recover, operating rates are expected to increase; this could marginally alleviate the current supply tightness, thereby further constraining the potential for significant price surges. Overall, with bullish and bearish factors intertwined, the market is expected to trade primarily within a stable-to-firm range.

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