According to the Commodity Market Analysis System of Shengyi Society, the overall trend of mixed xylene market has been declining recently (7.19-7.26). On July 26th, the benchmark price of mixed xylene was 7760 yuan/ton, a decrease of 1.02% from 7840 yuan/ton on July 19th. The mixed xylene market has experienced an overall decline in this cycle, but the magnitude of the downward adjustment varies among different markets, with the largest decline occurring in the Shandong market. The price has been reduced by about 120 yuan/ton, and as of the 26th, the quoted price ranges from 7680-7700 yuan/ton. On the supply side, refinery prices have generally declined this week, with overall high inventory levels. The supply of goods from ports in East China has increased, and the overall market supply is relatively loose. On the demand side, it is affected by the weak market atmosphere, and downstream demand maintains the replenishment of essential needs, with demand support biased towards essential needs.
On the cost side: At the beginning of this cycle, the trend of crude oil has declined. On the one hand, the geopolitical situation has eased, which is bearish for the crude oil market. In addition, the strengthening of the US dollar has affected economic activity in the United States due to hurricanes, putting pressure on crude oil demand and causing signs of a slowdown in US crude oil exports. On the other hand, there are also signs of slowing economic growth in the Eurozone and China, especially the decline in China’s crude oil imports, which has had a negative impact on the crude oil market. Overall, the crude oil market has declined during the cycle. As of July 25th, international crude oil futures have risen. The settlement price of the main contract for WTI crude oil futures in the United States was $78.28 per barrel, an increase of $0.69 or 0.9%. The settlement price of the main Brent crude oil futures contract was $82.37 per barrel, an increase of $0.66 or 0.8%.
Supply side: As of July 26th, Sinopec’s xylene quotations have generally decreased this week. Currently, the company is operating normally, with stable production and sales of equipment. The company’s quotations remain unchanged from the previous day. Among them, the East China Company quoted 7750 yuan/ton, the North China Company quoted 7650 yuan/ton, the South China Company quoted 7850-7950 yuan/ton, and the Central China Company quoted 7600 yuan/ton.
Demand side: Phthalic anhydride and p-xylene markets continue to decline
According to the Commodity Market Analysis System of Shengyi Society, the phthalic anhydride market continued to decline this week. As of the 26th, the phthalic anhydride market in Shandong Province, China, had a downward trend. Downstream factories maintained their demand for essential purchases, and high-end transactions were hindered. The mainstream negotiations for ortho benzene method sources in the market were between 7600-7800 yuan/ton, and the mainstream negotiations for naphthalene method sources were between 7350-7500 yuan/ton. The price of raw material ortho benzene was temporarily stable, while the downstream plasticizer market fluctuated and fell. The operation of on-site merchant equipment was stable, and the sales situation was average.
The external market for xylene continues to decline, and the demand support for toluene is relatively weak
On July 26th, Sinopec Sales Company temporarily stabilized the price of xylene, with the current price being 8900 yuan/ton. This price is implemented in East China, North China, Central China, and South China. Yangzi Petrochemical, Zhenhai Petrochemical and other facilities are operating stably and sales are normal. The external PX price continues to decline, with CFR China closing at $993-995/ton as of July 25th, a decrease of $16/ton from last week.
As of Thursday (July 25th), the Asian xylene market closed down, with FOB Korea closing at $880-882/ton in August, a decrease of $13/ton; In August, CFR China closed at $911 per ton, a decrease of $11 per ton.
Market forecast: Limited support in the crude oil market, oil prices will continue to fluctuate in the low range, and there will be insufficient cost support. The overall supply of goods from ports in East China is on the rise, and the market supply has been relatively loose recently. On the demand side, the overall performance of the downstream market is weak, and the xylene market only maintains the demand for replenishment. On the 25th, both the xylene and PX external markets fell, and market expectations were weak. Overall, the atmosphere in the xylene market is relatively weak, and it is expected that prices will remain stable, moderate, and weak in the short term.
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