SunSirs: Demand Was Weak, Xylene Market Was Down

Price trend

According to the SunSirs’ Commodity Market Analysis System, the xylene market performed weakly last week. From August 4th to 11th, 2025, the price of xylene decreased by 3.13%, from 6,070 RMB/ton to 5,880 RMB/ton. The overall domestic xylene market declined during this period, and the overall weakness of the crude oil market during the week weighed on spot market sentiment. In Shandong Province, ex-factory prices continued to decline due to low downstream purchasing intentions. Supply in East and South China was relatively loose during the week, coupled with weak downstream demand, leading to an overall downward trend in market prices.

Analysis review

Cost:

As of the 8th, the September contract for WTI crude oil futures settled at $63.88 per barrel. The October contract for Brent crude oil futures settled at $66.59 per barrel. Negative factors weighed on the crude oil market. OPEC+ announced a cumulative production increase of 2.3 million barrels per day (bpd) by September, marking the organization's exit from its planned production cuts of over 2.2 million bpd a year ahead of schedule. This news was also bearish for the oil market. Furthermore, the geopolitical situation in the Middle East, negative global macroeconomic data, and the impending summer off-season in the US were impacting the oil market. This, coupled with fundamental factors such as the impending US summer demand slowdown, will continue to pressure crude oil prices.

Supply Side:

Sinopec's xylene price summary: As of August 11th, operations were operating normally, production was stable, and both production and sales were steady. Company prices remained unchanged from the previous day. As of August 11th, the East China company quoted 5,950 RMB/ton, the North China company quoted 5,750-5,950 RMB/ton, the South China company quoted 5,900-5,950 RMB/ton, and the Central China company quoted 5,700-5,850 RMB/ton.

Demand Side:

On August 11, 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 remained unchanged from August 4. As of August 8, the closing price of paraxylene in the Asian market was $814-816/ton FOB Korea and $839-841/ton CFR China, a decrease of $20/ton from August 1.

Market outlook

On the supply side, some plants in Shandong have been shut down, while others have resumed operations, resulting in a relatively loose supply in the region. On the demand side, the oil blending industry has performed well recently, with inventory replenishment based on demand. Purchasing intentions in the chemical industry have been relatively low, with investors buying on dips. Overall, the demand side still leans towards rigid demand. The overall supply-demand situation is slightly bearish. The xylene market is expected to remain stable but weaker in the short term.

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