1、 Price trend

According to the data of the business club’s large scale list, the domestic xylene market price fell this week and was revised back. As of Friday, the domestic average price was about 3450 yuan / ton, down 7.0% on last week.

2、 Analysis and comment

1. Product: due to the oversupply of international crude oil and the near saturation of storage capacity, the price of oil this week plummeted to the bottom again. For the first time in the contract delivery history of WTI in May, the price of domestic toluene fell this week. At present, the mainstream price in East China is about 3550 yuan / ton.

2. Industrial chain:

Upstream, in terms of crude oil, short-term international crude oil oversupply and storage capacity close to saturation led to another sharp drop in oil prices this week, and WTI fell to a negative range for the first time in the history of contract delivery in May. As of early Friday morning, spot Brent fell 19.09%, Brent futures fell 20.44%, WTI futures fell 34.08% and Dubai futures fell 12.09%.

Downstream, in PX market, this week, the price of domestic Sinopec’s enterprises was about 4300 yuan / ton, and the latest price on the external market was about 445 US dollars / ton for FOB South Korea and 463 US dollars / ton for CFR China. It is expected that the market price of PX will maintain a stable trend in the short term. In terms of PTA market, the price of domestic PTA spot market is about 3200 yuan / ton, and the price of external market is about 406 US dollars / ton CFR China. It is expected that the PTA price trend will be stable next week. In the ox market, Sinopec’s offer of o-benzene is stable, with a price of 4200 yuan / ton. The external price of o-benzene is about 440 US dollars / ton FOB South Korea. It is expected that the price of o-benzene will be stable next week.

3、 Future forecast

According to xylene analyst of business and chemical branch, in the short term, in terms of supply cost, Saudi Arabia and Algeria, the main oil producers of OPEC, said that they began to reduce production before the target date of May 1, and the situation in the US and Iran is tightening, which is favorable for oil price, while the international crude oil supply exceeds the demand, which is negative for oil trend. 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 focus on the impact of the US Iraq situation on the crude oil market, the trend of international crude oil and the progress of the resumption of construction of domestic downstream enterprises. Overall, it is expected that xylene prices in the domestic market next week will depend on the trend of crude oil.