SunSirs: China Refined Naphtha Market Continued to Rise in the First Half of January

According to the Commodity Analysis System of SunSirs, the market for locally refined and hydrogenated naphtha continued to rise in the first half of January. As of January 15th, the mainstream ex factory price of domestically refined and hydrogenated naphtha was 7,904 RMB/ton, an increase of 2.03% from January 1st at 7,746.50 RMB/ton. The actual transaction price of locally refined and hydrogenated naphtha was around 7,800-8,000 RMB/ton.

The market for locally refined straight run naphtha continued to rise in the first half of January. As of January 15th, the mainstream ex factory price of domestically refined straight run naphtha was 7,789.00 RMB/ton, an increase of 1.63% from January 1st's 7,664.00 RMB/ton price. The actual transaction price of locally refined straight run naphtha was around 7,700-7,900 RMB/ton.

In the first half of January, the shortage of essential goods for the local refining and restructuring was replenished, and refineries actively pushed for an increase; There is a lack of substantial benefits in ethylene cracking, and demand continues to be weak.

Upstream: The recent international crude oil market has been volatile, mainly due to concerns about future energy demand caused by Saudi Arabia's comprehensive reduction in crude oil prices, as well as increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+), putting pressure on the oil market. Downstream: According to monitoring by SunSirs, downstream demand support is weak during the off-season, leading to an increase in toluene port inventory; Domestic production has slightly declined, and the pressure on toluene supply is expected to ease. In the first half of January, the prices of toluene and mixed xylene increased; The PX price trend is stable, and the domestic PX operating rate remains above 80%. Downstream support for the naphtha market is generally weak.

The international crude oil market is volatile, increasing the wait-and-see sentiment in the naphtha market; The domestic gasoline and diesel market is still in the off-season, and there is no significant positive news for the local refined naphtha terminal. The shortage of local refined naphtha needs to be replenished, and merchants are cautious in chasing higher prices. It is expected that the local refined naphtha market will mainly consolidate at a high level in the near future.

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