SunSirs: Xylene Prices Rose First and Then Fell in December

Price trend

According to the business data analysis system of SunSirs, the xylene market in December 2025 experienced an initial rise followed by a decline, but overall showed an upward trend. From December 1st to 30th, the domestic xylene market price rose from 5,470 RMB/ton to 5,510 RMB/ton, representing a cumulative increase of 0.73% during the period.

Early to mid-month: The domestic xylene market showed a moderate upward trend. Shandong, as a core production area, saw good sales from refineries, providing stable support to the regional market. The East China and South China markets followed suit with price increases. Major refineries, such as Sinopec, maintained stable pricing, and market sentiment remained positive. Downstream blending and chemical industries continued their strategy of replenishing inventory as needed, maintaining a neutral level of purchasing activity. There were no large-scale stockpiling or destocking behaviors, supporting a slight increase in prices.

Late in the month: The domestic xylene market showed a moderate upward trend. Shandong, as a core production area, saw good sales from refineries, providing stable support to the regional market. The East China and South China markets followed suit with price increases. Major refineries such as Sinopec maintained stable pricing, and market sentiment remained positive. Downstream blending and chemical industries continued their strategy of replenishing inventory as needed, maintaining a neutral level of purchasing activity. There were no large-scale stockpiling or destocking behaviors, supporting a slight increase in prices.

Influencing factors

Cost side:

In December 2025, the domestic crude oil market showed a volatile downward trend. In the first ten days of the month, the market fluctuated within a narrow range. News of a slight increase in OPEC+ production in December and a suspension of production increases in the first quarter of 2026 briefly boosted market sentiment, but failed to reverse the loose supply situation. Domestic commercial crude oil inventories at ports increased by 1.67% month-on-month, indicating initial signs of supply pressure. After the middle of the month, concerns about a global crude oil surplus intensified, causing Brent crude oil to fall below $60/barrel, leading to a decline in the domestic market. Although geopolitical events such as the escalation of US sanctions against Venezuela triggered a short-term rebound, it failed to change the overall trend. Towards the end of the month, as the year-end approached, market trading activity decreased due to pressure from capital repatriation. Domestic major refineries maintained low operating rates, and weak end-user demand persisted, further suppressing oil prices. The entire period was characterized by a volatile downward trend driven by fundamental factors. As of the 26th, the settlement price of the US WTI crude oil futures February contract was $56.74/barrel, and the settlement price of the Brent crude oil futures February contract was $60.60/barrel.

Supply Side:

A summary of Sinopec's xylene price quotes showed that companies were operating normally, with stable production and balanced supply and demand. Company prices remained unchanged from the previous day. As of December 30th, the price in East China was 5,500 RMB/ton, in North China 5,200-5,300 RMB/ton, in South China 56,50-5,700 RMB/ton, and in Central China 5,250-5,450 RMB/ton.

Demand side: Downstream buyers were purchasing on an as-needed basis, resulting in overall weak performance

Domestic oil refining and chemical industries continued to adopt a demand-driven inventory replenishment strategy, resulting in low purchasing activity and no concentrated restocking behavior, thus limiting the upward pressure on prices. The PX market became a major bearish factor, with the price of the Zhengzhou Commodity Exchange's PX December contract fluctuating significantly in the latter half of the month. The closing price on the 29th was 7,208 RMB/ton, a significant decrease from the mid-month high. This downward pressure on costs subsequently led to weaker prices for xylene.

According to SunSirs' commodity market analysis system, as of December 30th, Sinopec Sales Company was implementing a price of 7,000 RMB/ton, with this price uniformly applied across the four major regions of East China, North China, Central China, and South China. Major production facilities such as those of Yangzi Petrochemical and Zhenhai Petrochemical were operating stably, and product sales were normal. Furthermore, the price had increased by 150 RMB/ton compared to November 28th.

In the international market: As of December 29, the closing price of paraxylene in the Asian market was $867-869/ton FOB Korea and $892-894/ton CFR China, an increase of $66/ton compared to the price on November 27.

Market Outlook

As of December 30, the domestic xylene market was in a state of flux, with both bullish and bearish factors at play: on the one hand, supply-side facilities were operating stably, ensuring ample supply, and refineries in key production areas such as Shandong were experiencing good sales, providing fundamental support to the market; on the other hand, international crude oil lacked clear upward momentum, the PX market remained under pressure, and weak downstream demand was suppressing prices. Overall, the xylene market lacked strong drivers for sustained upward or downward movement in the short term. It is expected to maintain a narrow range of fluctuations, with close attention needed to improvements in demand and the impact of developments in the PX market.

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