SunSirs: Terminal Demand Support, China Refining Naphtha Market Continues to Rise

According to the Commodity Analysis System of SunSirs, the market for refined and hydrogenated naphtha has recently risen. As of January 24th, the mainstream ex factory price of refined and hydrogenated naphtha in China was 7,981.50 RMB/ton, an increase of 0.98% from January 15th at 7,904 RMB/ton. The actual transaction price of refined and hydrogenated naphtha is around 7,900-8,000 RMB/ton.

Recently, the market for locally refined straight run naphtha has continued to rise. As of January 24th, the mainstream ex factory price of domestically refined straight run naphtha was 7,909 RMB/ton, an increase of 1.54% from January 15th's 7,789.00 RMB/ton price. The actual transaction price of locally refined straight run naphtha is around 7,800-7,900 RMB/ton.

In recent times, the demand for ethylene and reforming at the local refining terminal has been released, and refineries are actively pushing for an increase, with the main focus on transaction demand; At present, the overall weakness of the gasoline and diesel market has limited support for the naphtha market.

Upstream: Recently, the international crude oil market has been fluctuating and rising. On the one hand, the geopolitical situation has been affected by disturbances, and in addition, the production of the Shalala oil field in Libya has decreased, causing market concerns about supply issues. On the other hand, Saudi Arabia's comprehensive reduction in crude oil prices has raised concerns in the market about future energy demand, as well as increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+). In addition, the decline in US crude oil and distillate inventories has led to an increase in gasoline inventories.

Downstream: According to monitoring by SunSirs, the market for toluene and mixed xylene continues to rise. As of January 24th, the price of toluene is 6,890 RMB/ton, while the price of mixed xylene is 7,280 RMB/ton; The PX price trend is stable, and the domestic PX operating rate remains above 80%. Downstream support for the naphtha market.

The international crude oil market is fluctuating and rising, with cost support in the naphtha market; The local refined naphtha market is expected to experience a slight increase in the near future, as refineries are actively driving up demand for ethylene and reforming at the local refined naphtha terminal.

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