1、 Price trend

According to the data of the large scale list of business agencies, the domestic xylene market price continued to rebound this week. As of Friday, the domestic average price was about 3710 yuan / ton, up 6.92% on last week.

2、 Analysis and comment

1. Product: the short-term international crude oil supply exceeds the demand. This week, the oil price hit the bottom again. However, with the increasing rate of domestic economic commencement and resumption, the domestic xylene price trend this week is good. At present, the mainstream price in East China is about 3750 yuan / ton.

2. Industrial chain:

Upstream, in terms of crude oil, OPEC +, the world’s major oil producer, reached a historic production reduction agreement. In the long run, OPEC + is conducive to the balance of supply and demand in the crude oil market. However, in the short term, it is not enough to offset the impact of the continuous spread of overseas epidemics on the global economy, resulting in a sharp decrease in the demand for petroleum products such as gasoline, diesel oil and aviation oil, leading to another shock and bottoming out of oil prices this week. As of early Friday morning, spot Brent fell 20.54%, Brent futures fell 16.67%, WTI futures fell 11.42%, and Dubai futures fell 15.67%.

Downstream, in PX market, this week, the price of domestic Sinopec’s enterprises is about 4300 yuan / ton, and the latest price on the outside market is about 453 US dollars / ton for FOB South Korea and 471 US dollars / ton for CFR China. It is expected that PX market price will maintain a stable trend next week. In terms of PTA market, the price of domestic PTA spot market is about 3350 yuan / ton, and the price of external market is about 420 US dollars / ton CFR China. It is expected that PTA price will keep stable next week. In the ox market, Sinopec’s o-benzene quotation is stable, with the price of 4200 yuan / ton. The external price of o-benzene is about 455 US dollars / ton FOB South Korea. It is expected that the price of o-benzene will fluctuate slightly next week.

3、 Future forecast

According to xylene analysts of the chemical branch of the business society, in the short term, the supply cost is too high, the international crude oil supply exceeds the demand, and the overall trend of the oil price is weak, or it will be shaken to the bottom. In the medium term, we can see the demand side, the inflection point of overseas epidemic and the progress of economic restart. Next week, we will continue to focus on the impact of the continued spread of the overseas epidemic on the global economic recession, the trend of international crude oil and the progress of the resumption of construction of domestic downstream enterprises. Overall, xylene prices in the domestic market are expected to fluctuate slightly next week.