SunSirs: Weak Demand, the Xylene Market Was Downward

Price trend

According to the Commodity Market Analysis System of SunSirs, the xylene market fluctuated downward last week. From July 14 to July 21, 2025, the price of xylene had decreased from 6,050 RMB/ton to 5,960 RMB/ton, a decrease of 1.49%. The domestic xylene market had rebounded slightly after an overall decline in this cycle, and the overall trend was weaker. The decline in crude oil prices during the cycle has dragged down market sentiment. Downstream demand in Shandong region was relatively weak, and although refineries had voluntarily lowered their quotations, transactions were still limited. As downstream PX companies entered the market to replenish inventory, the market slightly rebounded. The East China region continued to operate weakly last week, with low inventory levels. With the reduction of refinery listing prices and market downturn in southern China, downstream demand tended to be more rigid.

Analysis review

On the cost side:

During this cycle, crude oil prices fluctuated at a low level. On the one hand, OPEC+ is likely to maintain a significant increase in production in August and September, and the tension in the Middle East had eased compared to before. As a result of this news, the international oil market trend declined; On the other hand, the market's concerns about the US tariff negotiations had eased to some extent, and major institutions had a pessimistic view of the demand outlook. The demand side may be difficult to change, and the crude oil market remained weak. As of July 18th, international crude oil futures closed down. The settlement price of the September WTI crude oil futures contract in the United States was $66.05 per barrel. The settlement price of Brent crude oil futures for September was $69.28 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 14th, East China Company quoted 6,150 RMB/ton, North China Company quoted 5,750-5,950 RMB/ton, South China Company quoted 6,200-6,250 RMB/ton, and Central China Company quoted 5,700-5,900 RMB/ton.

Demand side:

On July 21st, Sinopec Sales Company temporarily stabilized the price of p-xylene, with the current execution 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 units were operating stably and sales were normal. The price remains unchanged compared to July 14th. As of July 18th, the closing prices of the p-xylene market in Asia were $814-816/ton FOB Korea and $839-841/ton CFR China, an increase of $3/ton from July 11th.

Future outlook:

The recent weak trend of crude oil prices has dragged down market sentiment. From the supply side, the recent arrival situation at the port was not good, and the market supply was tight, which will provide a certain boost to the market in the short term. On the demand side, the downstream chemical and oil blending sectors had shown weak performance, with limited support for replenishing essential inventory. Supported by favorable supply side conditions, it is expected that the market will rebound slightly in the short term, but without demand support, the upward space is expected to be limited.

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