In July 2026, the domestic xylene market exhibited an overall trend of fluctuating upward; while prices experienced a slight pullback after peaking mid-month, the general price level shifted significantly higher over the course of the month. Data from the SunSirs commodity market analysis system indicates that between July 1 and July 30, the domestic market price for xylene rose from 5,791 RMB/ton at the start of the month to 6,366.67 RMB/ton by the end, marking a cumulative increase of 9.94%. The market rally was primarily driven by rising upstream costs, with a periodic tightening of spot supplies further fueling the climb; however, as the month drew to a close, downstream willingness to purchase at high price levels cooled, causing the upward momentum to slow and prices to retreat slightly.
Cost perspective:
Throughout July, cost factors provided sustained support for xylene prices. International crude oil prices trended upward with some volatility during the month, driving a parallel rise in naphtha prices and increasing feedstock costs for refining and petrochemical enterprises. As xylene is produced via catalytic reforming units, the rise in upstream feedstock costs was directly transmitted through the aromatics value chain; this increased production costs for refineries and strengthened their resolve to maintain higher price levels. This cost-driven support persisted throughout July, serving as the primary catalyst for the sustained rise in xylene prices from the beginning to the middle of the month and establishing a floor for market prices. Toward the end of the month, however, the upward momentum of crude oil prices waned, and the strength of cost-side support diminished, thereby limiting further gains for xylene. As of July 29, the settlement price for the September contract of US WTI crude oil futures stood at $84.46 per barrel, while the settlement price for the October contract of Brent crude oil futures was $88.09 per barrel.
Supply side
Domestic xylene supply was tight for much of July. Maintenance and reduced operating rates at the aromatics units of several domestic refineries curtailed the volume of product released to the market; meanwhile, port inventories remained relatively low, limiting the availability of spot supplies. Tight supply prompted traders to hold back stock, driving prices upward. Towards the end of the month, as units under maintenance gradually resumed normal operations, marketable supply slowly increased and the supply crunch eased slightly; lacking further momentum to push spot prices higher, the market entered a period of correction. Overall, the shift from tight to looser supply drove the month's price trend: an initial rise followed by a pullback.
Demand side:
According to the commodity market analysis system of SunSirs, Sinopec raised its executed price for paraxylene (PX) to 8,500 RMB/ton as of July 30—an increase of 600 RMB/ton from the 7,900 RMB/ton recorded on June 30. This price is currently being implemented uniformly across East, North, Central, and South China, with production units at facilities such as Yangzi Petrochemical and Zhenhai Petrochemical operating stably and sales proceeding normally. A sustained rebound in overseas PX prices from recent lows has provided cost support, driving up domestic ex-factory quotes. However, demand recovery in the downstream PTA and polyester markets remains limited; enterprises show little inclination to chase rising prices, and end-user procurement remains cautious, making it difficult for the demand side to provide a strong upward push.
International Market: Asian paraxylene (PX) prices rebounded from lows in July. While the market initially extended the weak trend seen in June, prices recovered by month-end to $1,045-1,047/tonne (FOB Korea) and $1,066-1,068/tonne (CFR China). A recovery in crude oil prices during the month provided cost support, driving a gradual price rebound of over $86/tonne from end-of-June levels. However, due to sluggish downstream demand, the rebound was limited, and market trends remained heavily dependent on fluctuations in crude oil prices.
In July, downstream demand for xylene was characterized by steady essential consumption but caution regarding chasing higher prices. Downstream PX units maintained stable operations, continuously consuming xylene feedstock; meanwhile, the solvent sector—covering coatings, inks, and adhesives—sustained routine procurement based on immediate needs, providing fundamental market support. However, as prices climbed and raw material procurement costs rose, market resistance gradually emerged. Most downstream enterprises abandoned stockpiling strategies in favor of small, on-demand orders, eschewing large-scale, concentrated restocking. By month-end, the impact of the traditional off-season became increasingly apparent; terminal demand softened further and trading activity declined, making it difficult to sustain prices at such high levels.
Market Outlook:
The domestic xylene market remains constrained by both cost factors and supply-demand dynamics. Regarding costs, significant uncertainty surrounds international crude oil trends; while continued price fluctuation provides a floor for xylene prices, it offers little momentum for sustained upward movement. On the supply side, refineries that previously underwent maintenance are gradually resuming production, leading to a steady increase in market availability and a continued easing of supply tightness. On the demand side, downstream industries have entered the traditional off-season, limiting the scope for increased operating rates; consequently, downstream enterprises remain cautious given the high cost of raw materials and show little inclination for bulk restocking. Analysis by SunSirs suggests that xylene lacks the momentum for a sustained rally, yet cost support limits the downside; the market is expected to consolidate at high levels in the near term. Future attention should focus on international crude oil trends, the volume of supply released by refineries, and purchasing patterns in the downstream PX and solvent sectors.
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