SunSirs: Demand is Weak and the Xylene Market has Slightly Declined this Week

According to the commodity market analysis system of SunSirs, the toluene market fluctuated and fell on Tuesday this week. From May 16 to May 23, xylene was adjusted down from 5,860 RMB/ton to 5,740 RMB/ton, a decrease of 2.05%. The xylene market fluctuated downward in this cycle, and the downstream demand performed poorly, dragging down market sentiment. The Shandong market fell first and then rose this week. The downstream chemical industry released the demand for replenishment and actively entered the market for procurement, driving the spot market to improve slightly at the weekend. The overall trend in East China and South China this week was weak, the port inventory was high, the main refineries generally lowered, and the spot market prices followed the decline.

Cost side: The crude oil market rose first and then fell in this cycle, and it was generally upward. As of May 22, the settlement price of the main contract of US WTI crude oil futures was US$61.20/barrel. The settlement price of the main contract of Brent crude oil futures was US$64.44/barrel.

Supply side:

Sinopec xylene quotation summary, the company is currently operating normally, the production of the equipment is stable, the production and sales are stable, and the company's quotation is the same as the previous day. As of May 23, the East China company quoted 5,800 RMB/ton, the North China company quoted 5,600-5,750 RMB/ton, the South China company quoted 5,750-5,800 RMB/ton, and the Central China company quoted 5,650-5,800 RMB/ton.

                                                        Unit: RMB/ton.

Demand side:

On May 26, the price of paraxylene of Sinopec Sales Company was temporarily stable, and the current implementation price was 6,850 RMB/ton. East China, North China, Central China and South China all implemented this price. The Yangzi Petrochemical and Zhenhai Petrochemical units were operating stably and sales were normal. It was increased by 150 RMB/ton compared with May 16.

As of May 23, the closing price of paraxylene in the Asian market was 800-802 US dollars/ton FOB Korea and 825-827 US dollars/ton CFR China, which was reduced by 28 US dollars/ton compared with May 15.

Forecast for the future market: Crude oil has a weak trend in the near future, and the cost support of xylene is limited. From the demand side, the overall demand of downstream has turned to rigid demand purchase recently, and the related futures commodities have weakened, which has led to a low sentiment in the spot market. As the holiday approaches, there is still some pre-holiday stocking demand in the downstream. Overall, the mixed xylene market has mixed negative and positive factors, and it is expected to be dominated by strong fluctuations in the short term.

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