In June 2026, the domestic xylene market trended weakly, closing lower overall. Throughout the month, spot prices followed a continuous downward trajectory, with the overall price level shifting significantly lower compared to the previous month. Market performance was driven entirely by the three fundamentals of cost, supply, and demand: falling upstream raw material prices consistently dampened market expectations, while ample spot supplies limited upward potential. Compounded by sluggish demand during the off-season and persistent downward pressure from the PX industry chain, the market lacked any significant bullish drivers. Industry sentiment remained cautious; market participants focused on moving inventory, while end-users largely adopted a wait-and-see approach, resulting in low overall trading activity. The xylene market remained notably weak throughout June. According to the SunSirs commodity market analysis system, the domestic market price fell from 6,717.67 RMB/ton at the beginning of the month to 5,811 RMB/ton at the end, marking a cumulative decline of 13.5% over the period.
Cost Side:
In June, international crude oil prices fluctuated with a generally weak tone, trending downward overall; brief, minor rebounds occurred only sporadically, failing to provide sufficient support to the broader aromatics market. Driven by the decline in crude oil, Asian naphtha prices also fell, leading to a drop in raw material costs for domestic xylene production. While producers maintained stable profit margins, the lack of upward momentum in the raw material market failed to provide a significant boost to spot prices, making it difficult to establish a solid cost-based price floor. Consequently, petrochemical companies continuously lowered their quotes, further driving down the overall market price level. As of June 26, the settlement price for the August contract of US WTI crude oil futures stood at $69.23 per barrel, while the settlement price for the September contract of Brent crude oil futures was $72.60 per barrel.
Supply Side:
In June, major domestic refining, petrochemical, and aromatics production units operated steadily, maintaining high overall operating rates, with a stable flow of domestically produced xylene entering the market. Concurrently, imports arrived and were warehoused as usual; major ports saw ample arrivals, and inventory levels continued to rise gradually. Overall market liquidity was high, resulting in a generally loose supply situation. Although plans for maintenance at some refining and petrochemical units emerged in late June, there was no widespread, simultaneous shutdown; consequently, the current state of abundant supply is unlikely to change in the short term. Market circulation remained smooth, while overall supply-side pressure remained significant.
Demand Side:
According to the SunSirs commodity market analysis system, mainstream ex-factory prices stood at 8,800–8,900 RMB/ton at the beginning of the month but fell to around 7,500–7,600 RMB/ton by month-end. Downstream PTA and polyester sectors were already in their off-season; compounded by the continued weakening of PX prices, purchasing sentiment became increasingly cautious. Consequently, indirect demand for toluene also softened, leaving the overall demand side struggling to show signs of recovery.
International Market: Asian paraxylene (PX) prices saw a sharp overall decline in June. At the beginning of the month, quotes stood at $1,114–1,116/tonne (FOB Korea) and $1,135–1,137/tonne (CFR China). Prices retreated rapidly mid-month due to weakening crude oil markets, eventually falling to $959–961/tonne (FOB Korea) and $980–982/tonne (CFR China) by month-end—a total drop exceeding $150/tonne.
The persistent weakness in the PX market acted as a significant drag, driving a substantial overall decline in Asian PX prices throughout the month; quotes started at relatively high levels but retreated steadily to monthly lows, marking a pronounced downward trend. Domestic PX ex-factory prices tracked these international declines, moving steadily lower. With downstream PTA and polyester industries already in their off-season, the continuous drop in PX prices heightened a "wait-and-see" sentiment among buyers. This indirectly suppressed demand in the xylene market, resulting in overall sluggish demand throughout the month.
June marks the official start of the traditional off-season for the chemical industry; compounded by hot and rainy weather across many regions of China, this has directly led to a slowdown in operating rates among key downstream sectors—such as coatings, inks, and adhesives—and a marked contraction in actual demand for production materials. Procurement activity in the gasoline blending and fine chemical sectors has also remained subdued, with downstream enterprises generally adhering to a "purchase-on-demand" strategy and maintaining low inventory levels; market transactions are dominated by sporadic orders driven by immediate needs, resulting in an overall sluggish trading atmosphere.
Market Outlook:
Overall, the xylene market in June was weighed down by multiple bearish factors—including weakening costs, ample supply, and sluggish end-user demand—resulting in weak fundamentals and a lackluster trading atmosphere. Market participants remained cautious; traders generally prioritized offloading inventory for cash, while end-users showed little enthusiasm for purchasing. Given the current fundamentals, the domestic xylene market is expected to remain weak and range-bound in July, with little prospect of a significant rebound. In the short term, crude oil and naphtha prices are unlikely to improve, leaving cost support insufficient; domestic production remains stable, ensuring a persistent oversupply; and downstream industries remain in their off-season, limiting any rapid rise in operating rates. Consequently, the aromatics chain remains under pressure with the supply-demand imbalance—characterized by strong supply and weak demand—expected to persist. Prices will likely continue to fluctuate narrowly at low levels. Moving forward, key factors to watch include fluctuations in international crude oil prices, the recovery of downstream operating rates, and overall trends in the PX market.
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