SunSirs: Supply Was Tight and Xylene Market Saw a Slight Increase

Price trend

According to the SunSirs’ Commodity Market Analysis System, the xylene market saw a slight increase last week. From July 28 to August 4, 2025, the price of xylene rose from 6,010 RMB/ton to 6,070 RMB/ton, a 1% increase. The domestic xylene market closed higher overall last week, with Dongming Petrochemical in Shandong undergoing maintenance. Regional supply remained tight, prompting refineries to generally raise ex-factory prices. Port inventories in East and South China remained low, prompting continued enthusiasm from downstream buyers, leading to a slight increase in market prices.

Analysis review

Cost: As of August 1st, international crude oil futures closed lower, with the September contract for WTI crude oil futures settling at $67.33 per barrel. The October contract for Brent crude oil futures settled at $69.67 per barrel. Market concerns about OPEC's potential increase in oil production, coupled with U.S. employment data, dampened demand prospects.

Supply: Sinopec's xylene price summary showed that operations were temporarily operating normally, production was stable, and sales and production were steady. Company prices remained unchanged from the previous day. As of August 4th, East China's company quoted 6,150 RMB/ton, North China's company quoted 5,750-5,950 RMB/ton, South China's company quoted 6,150-6,200 RMB/ton, and Central China's company quoted 5,800-6,050 RMB/ton.

Demand Side: On August 4th, Sinopec Sales Company's paraxylene prices remained stable at 7,000 RMB/ton. This price applied to all regions in East China, North China, Central China, and South China. Plants at Yangzi Petrochemical and Zhenhai Petrochemical were operating stably, and sales were normal. This price was down 250 RMB/ton from July 28th. As of August 1st, the closing price of paraxylene in the Asian market was $834-836/ton FOB Korea and $859-861/ton CFR China, a decrease of $13/ton from July 25th.

Market outlook

On the supply side, recent arrivals at ports have been poor, resulting in a tight market, which may provide some short-term support. On the demand side, downstream chemical and oil blending sectors are performing well, with some purchasing interest from the oil blending industry. Supported by positive supply factors, the market is expected to recover slightly in the short term, but overall upward space is limited.

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