SunSirs: Weak Demand, Xylene Market was Downward

Price trend

According to the Commodity Market Analysis System of SunSirs, the xylene market slightly declined last week. From June 27 to July 4, 2025, the price of xylene had decreased from 6,180 RMB/ton to 6,120 RMB/ton, a decrease of 0.97%. This cycle, the domestic xylene market slightly decreased, and downstream demand for crude oil had weakened, leading to a weak atmosphere in the spot market. The Shandong region had been weak last week, with poor demand from downstream chemical and oil blending industries, leading to a decrease in quotes from major refineries. Both supply and demand showed a weak trend. As the price difference between toluene and xylene continued to narrow, some downstream consumers turned to buying toluene, resulting in a weak market atmosphere and a slight decline in prices.

Analysis review

Cost side: The international crude oil market had fluctuated and risen this cycle. As of July 4th, the US WTI crude oil futures were closed for the Independence Day holiday, and the September Brent crude oil futures contract settlement price was $68.30 per barrel.

Supply side: Sinopec's xylene quotation summary showed that the company was temporarily operating normally, with stable production and sales. The company's quotation remained unchanged from the previous day. As of July 7th, East China Company quoted 6,150 RMB/ton, North China Company quoted 5,900-6,100 RMB/ton, South China Company quoted 6,200-6,250 RMB/ton, and Central China Company quoted ,6000-6,150 RMB/ton.

Demand side: On July 7th, Sinopec Sales Company temporarily stabilized the price of xylene, with a  price of 7,250 RMB/ton. This price was implemented in East China, North China, Central China, and South China. Yangzi Petrochemical, Zhenhai Petrochemical and other facilities were operating stably and sales were normal. Reduced by 50 RMB/ton compared to June 30th. As of July 4th, the closing prices of the xylene market in Asia were $815-817/ton FOB Korea and $840-842/ton CFR China, a decrease of $26/ton from June 27th.

Market outlook

Recently, the macro performance has been weak, and crude oil prices have been fluctuating sideways, providing insufficient guidance to the market. From the perspective of supply and demand, refinery and port inventories were operating at a low level, which still provided some support for the market. The downstream intention on the demand side still leaned towards rigid demand. Under the atmosphere of supply and demand game, it is expected that the xylene market will mainly experience narrow fluctuations in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.