SunSirs: Downstream Demand is Weak, China Refined Naphtha Market is Declining

According to the Commodity Analysis System of SunSirs, as of November 27th, the mainstream ex factory price of domestic refined hydrogenated naphtha was 7,936.50 RMB/ton, a decrease of 1.21% from November 20th at 8,034.00 RMB/ton. The actual transaction price of refined hydrogenated naphtha was around 7,900-8,000 RMB/ton.

As of November 27th, the mainstream ex factory price of domestically refined straight run naphtha was 7,871.50 RMB/ton, a decrease of 1.25% from the price of 7,971.50 RMB/ton on November 20th. The actual transaction price of locally refined straight run naphtha was around 7,800-7,900 RMB/ton.

Last week, the market for refined naphtha in the local area declined, with limited terminal demand and primary demand for essential purchases. Refineries reduced prices for shipments, resulting in limited transactions.

Upstream: The international crude oil market has been fluctuating and declining recently. On a macro level, global economic data remains weak, and it is highly likely that the Federal Reserve will maintain high interest rates in the medium term, which will put pressure on energy demand. On the supply and demand side, the OPEC+ meeting of oil producing countries has been postponed, and the market is generally wait-and-see, waiting for policy guidance to be implemented. In terms of demand, the processing rate of refineries in North America remains low, while demand in Asia is uncertain and there is a trend of accumulating inventory in the market, suppressing the rise of oil prices.

Downstream: According to monitoring by SunSirs, the price of toluene has slightly declined, with a price of 6,780 RMB/ton on November 27th, a decrease of 0.29% from 6,800 RMB/ton on November 20th; The price of mixed xylene remained stable, with a price of 7,120 RMB/ton on November 27th, which remained stable compared to November 20th. The price trend of PX is temporarily stable, and as of November 27th, the domestic ex factory price of xylene is 8,700 RMB/ton.

Energy analysts from SunSirs believe that the international crude oil market is fluctuating downward, with limited cost support for the naphtha market. The gasoline and diesel market has entered the off-season, and there is no significant positive news for the local refined naphtha terminal. Market trading is limited, and there is a strong wait-and-see sentiment. It is expected that the local refined naphtha market will be mainly weak in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.