1、 Price trend

The domestic xylene market continued to rise this week, with the average price of 3630 yuan / ton as of Friday, up 2.48% month on month.

2、 Analysis and comment

Boosted by the rise of international crude oil prices, xylene prices continued to rise this week. The listed price of xylene in Sinopec’s enterprises generally rose by 50-150 yuan / ton this week. Port inventory is high. At present, the port inventory in East China is about 131000 tons, down 4000 tons compared with last week, and the pressure to go to the warehouse is not reduced. Market oversupply, downstream Px, gasoline blending demand is general. At present, the price is about 3630 yuan / ton in East China. The future market will focus on the outcome of the US election, the progress of the US economic stimulus plan, the fluctuation of the US dollar index and the stock market, the geographical situation in the Middle East and the impact of OPEC + on crude oil supply, the impact of the continuous deterioration of overseas epidemic situation on the demand for crude oil, the progress in the research and development of the new crown vaccine, the global economic recovery, and the European and American economic recovery relief plan Progress.

Upstream, crude oil, supported by good vaccine news and OPEC’s hope of delaying production increase, this week’s international crude oil prices rose. However, due to the failure of US fiscal stimulus negotiations, the global epidemic is still serious, and oil prices are still facing downward risks. As of Friday, spot Brent rose $1.65/barrel to close at $43.435/barrel, up 3.95% from last week. At present, the main uncertain factors in the market come from the new crown epidemic in Europe and the United States and the uncertainty of the US presidential election. The final direction of crude oil will not take further action until the demand side is better and the US election is clear. In the medium term, oil prices mainly depend on the recovery of demand side and the direction of macro market.

The price of Sinopec / CFR is about US $4300 / FOB in the domestic and foreign markets. PX market is expected to stabilize in the short term. In terms of PTA market, the market price continued to rebound this week. The domestic PTA spot market price was about 3300 yuan / ton, and the external price was about 435 US dollars / ton CFR China. PTA price is expected to maintain a stable trend next week. In terms of ox market, Sinopec quoted 4400 yuan / ton of o-benzene, and the external price of o-benzene was about 580 US dollars / ton FOB Korea and 620 US dollars / ton CFR China. It is expected that the price of o-benzene will maintain a stable trend next week.

3、 Future forecast

Xylene analysts of the chemical branch of the business society think: first look at the supply cost side, the implementation of OPEC + production reduction, the total number of us oil drilling and EIA, API inventory data. Second, on the demand side, the impact of the worsening global epidemic situation on crude oil demand, the progress of industrial chain recovery, the economic and trade situation of Europe and the United States and the progress of economic recovery and rescue plan. Third, look at the linkage between the US dollar index and the stock market, the progress in the research and development of the new crown vaccine, and the geopolitical situation in the Middle East and China and the United States. Next week, we will focus on the US general election, the progress of a new round of US stimulus measures, and the impact of dollar index and stock market volatility on the trend of crude oil. Overall, xylene in the domestic market is expected to fluctuate slightly next week.