SunSirs: Demand Was Weak, and the Xylene Market Fell First in August and Then Stabilized

Price trend

According to the SunSirs commodity market analysis system, the xylene market experienced a volatile downward trend in August 2025. From August 1 to 29, the domestic xylene market price fell from 6,070 RMB/ton to 5,680 RMB/ton, a cumulative decrease of 6.43% over the period.

Analysis review

Mid-to-early August: The domestic mixed xylene market experienced an overall downturn during this period, along with a weakening crude oil market, weighing on spot market sentiment. In Shandong, ex-factory prices continued to decline due to subdued downstream purchasing activity. During the week, supply in East and South China was relatively loose, and downstream demand was weak, driving overall market prices downward.

Late August: The xylene market experienced minimal fluctuations during this period, with only a narrow downward adjustment. Major refineries in Shandong Province adjusted their listed prices slightly downward, maintaining a narrow range. Downstream chemical companies remained enthusiastic about entering the market, maintaining a relatively stable market. Downstream companies in East and South China were experiencing strong demand to replenish inventories, resulting in a relatively stable market. Ex-factory prices from major refineries in surrounding areas remained firm, maintaining a relatively stable supply and demand picture.

Cost side

As of the 26th, the October contract for U.S. WTI crude oil futures settled at $63.25 per barrel, and the October contract for Brent crude oil futures settled at $67.22 per barrel. Crude oil prices have been volatile during this round of price adjustments. OPEC+ announced a cumulative production increase of 2.3 million barrels per day by September, marking the organization's exit from its planned production cuts of over 2.2 million barrels per day a year ahead of schedule, which was bearish for the oil market. Furthermore, tensions in Europe and the resulting peace talks have weakened geopolitical supply risks. Negative global macroeconomic data, coupled with expectations of a September interest rate cut by the Federal Reserve, have made it difficult for the crude oil market to maintain positive momentum.

Supply:

Sinopec's xylene price summary shows that operations were temporarily operating normally, production was stable, and both production and sales were steady. Company prices remained unchanged from the previous day. As of August 29th, the East China company quoted 5,700 RMB/ton, the North China company quoted 5,600-5,750 RMB/ton, the South China company quoted 5,750 RMB/ton, and the Central China company quoted 5,600-5,650 RMB/ton.

On the Demand Side:

According to the Sinopec Commodity Market Analysis System, as of August 29, 2025, the price of paraxylene at Sinopec Sales Company remained stable at 7,200 RMB/ton. This price applied to East China, North China, Central China, and South China. Plants at Yangzi Petrochemical and Zhenhai Petrochemical were operating stably, with sales normal. This represented a 50 RMB/ton decrease from the July 30th price. As of August 28, the closing price of paraxylene in the Asian market was $822-824/ton FOB Korea and $847-849/ton CFR China, a 19 RMB/ton decrease from July 30th.

Market outlook

On the supply side, recent changes have been minimal, with overall export performance relatively stable. Ship arrivals have been favorable, indicating a generally stable supply. On the demand side, PX plant operating rates are unlikely to rise further, and subsequent purchasing intentions remain stable. The oil market performance depends on rigid demand. Overall, under the combined influence of weak supply and demand, the xylene market is expected to remain stable with a slight drop in performance.

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