SunSirs: Supply and Demand Were Weak, and the Xylene Market Slightly Declined

Price trend

According to the SunSirs Commodity Market Analysis System, the xylene market saw a slight decline last week, with prices dropping from 5,350 RMB/ton to 5,300 RMB/ton from October 13 to 20, 2025, a decrease of 0.93%. The xylene market weakened during this period, with weak demand from the oil blending industry in Shandong Province. Major refineries generally lowered their ex-factory prices slightly, with active shipments. Inventories in East China remained low, but market activity was average. Prices at major refineries in South China remained stable during the week, reflecting a subdued market and relatively stable prices. 

Analysis review

Cost side:

According to the SunSirs commodity market analysis system, as of October 17, the December settlement price of US WTI crude oil futures contracts was $57.15 per barrel. The December settlement price of Brent crude oil futures contracts was $61.29 per barrel. The toluene market experienced a decline from October 13 to October 20, 2025. The benchmark price of toluene was 5,280 RMB/ton on October 13, and 5,200 RMB/ton on October 20, a decrease of 1.52%. The domestic toluene market experienced a volatile downward trend during this period. Major refineries in Shandong Province lowered their ex-factory prices, actively shipping products. Demand in the downstream chemical and oil blending industries remained stable, with purchases focused on just-in-time needs. Prices in the East China market declined, and downstream market participation remained subdued. The South China market, impacted by weak crude oil prices, showed a weak and volatile trend. Overall, the toluene market experienced limited volatility last week.

Supply side:

Sinopec's xylene units were temporarily operating normally, with stable production and sales. Prices remained unchanged from the previous day. As of October 17, the East China unit was quoting 5,300 RMB/ton, the North China unit quoting 5,100-5,250 RMB/ton, the South China unit quoting 5,400-5,450 RMB/ton, and the Central China unit quoting 5,150-5,300 RMB/ton.

Demand side:

On October 20th, Sinopec Sales Company reported a temporary stabilization of paraxylene prices at 6,650 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. As of October 17th, the closing price of paraxylene in the Asian market was $759-761/ton FOB Korea and $784-786/ton CFR China.

Market outlook

The crude oil market was weak recently, with weak macroeconomic conditions providing insufficient market support. Recent changes on the supply side had been limited, impacting the market. On the demand side, downstream markets were weak recently, with raw material inventory replenishment primarily based on demand. Overall, news had been relatively muted recently, and the market is expected to remain stable in the short term, with limited volatility.

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