According to the Commodity Market Analysis System of Shengyi Society, the xylene market will first rise and then fall in February 2025. From February 1st to 28th, the domestic xylene market price fell from 6670 yuan/ton to 6640 yuan/ton, with a cumulative price drop of 0.45% during the period.

First half of the month: The xylene market first rose and then fell, and after the holiday, downstream buyers actively entered the market to purchase and drive the xylene market up. As downstream replenishment came to an end and market demand declined, the xylene market entered a downward trend. There are also some differences in various markets, among which the mixed xylene market in Shandong region is overall declining. Due to insufficient downstream demand, the market procurement enthusiasm is limited, and the overall operation of the Shandong market is weak. Affected by low inventory, market prices in the East China region have slightly increased. Affected by tight supply in the South China region, Sinopec raised its ex factory prices. However, due to insufficient downstream receiving capacity, the market prices slightly declined, with an overall increase followed by a decrease.

In the second half of the week, the xylene market experienced a volatile downward trend, with slight differences in performance across regions. In Shandong, prices first fell and then rose, while downstream demand first weakened and then strengthened during the week. PX and oil blending industries actively entered the market for procurement, driving prices in Shandong to first fall and then rise. Affected by high inventory, the spot market in East China is under pressure and experiencing a slight decline. The overall inventory in southern China is high, and the market is under pressure to decline.

Cost aspect: The crude oil market has fluctuated and fallen this month, with price ranges fluctuating in the first half of the month. After entering the second half, prices first fell and then rose. On February 27th, the settlement price of the main contract for WTI crude oil futures in the United States was $70.35 per barrel. The settlement price of the main Brent crude oil futures contract is $73.57 per barrel.

Supply side:

Sinopec’s xylene quotation summary shows that the company is currently operating normally, with stable production and sales. The company’s quotation remains unchanged from the previous day. As of February 28th, East China Company quoted 6700 yuan/ton, North China Company quoted 6500 yuan/ton, South China Company quoted 6750-6800 yuan/ton, and Central China Company quoted 6400 yuan/ton.

Demand side:

On February 28th, the execution price of xylene by the petrochemical sales company was 7500 yuan/ton, and this price was implemented in East China, North China, Central China, and South China. Yangzi Petrochemical, Zhenhai Petrochemical and other units operated stably and sold normally, with a price increase of 200 yuan/ton compared to January 31st. As of February 27th, the closing prices of the xylene market in Asia were 841-843 US dollars/ton FOB Korea and 866-868 US dollars/ton CFR China.

Market forecast: The crude oil market trend is weak and lacks guidance for the market. On the supply side, the construction in Shandong region is relatively low, and the supply is tight. The port inventory in East China is relatively high, and the supply is loose. The purchasing intention for chemical and oil blending in Shandong region on the demand side is still acceptable, but the downstream trend has been weak recently, which has insufficient boost to the market. Affected by the weakening of PX futures in other regions, the overall purchasing intention is low, and the overall performance of the demand side is slightly bearish. Overall, it is expected that the market will maintain a range oscillation trend in the short term due to the lack of demand support.