1、 Price trend

The domestic xylene market rose slightly this week. As of Friday, the domestic average price was about 3530 yuan / ton, up 0.28% month on month.

2、 Analysis and comment

This week, the international oil price rose slightly and then fell back. As a whole, it was in a narrow fluctuation trend. Affected by this, the trend of toluene price this week was generally stable. Port inventory continued to be high. As of the end of last week, the port inventory in East China was about 143000 tons, down about 15000 tons compared with last week, and the pressure to go to the warehouse still exists. The main market price in East China is about 3600 yuan / ton. As the new coronavirus epidemic leads to the reduction of crude oil demand and the impact of geopolitical tightening on economic recovery concerns, the market continues to pay attention to the impact of the continued spread of overseas epidemic on the demand for crude oil, and the progress of the European and American economic recovery rescue plan.

Upstream, crude oil, this week, the international oil price rose slightly and then fell back. As of Friday, spot Brent fell $0.945/barrel to close at $43.57/barrel, down 2.12% from last week. The longer the oscillation lasts, the greater the possibility of large fluctuations in the future. The future market will pay close attention to the fluctuation and breakthrough of Brent crude oil between $42-46 / barrel. The future crude oil demand prospect and oil price trend mainly depend on the trend of global epidemic situation and the orderly recovery of national economy. At the same time, how oil producing countries and oil enterprises adjust their production is also an important factor affecting oil prices.

Downstream, in terms of PX market, the listed price of domestic Sinopec’s enterprises is about 4600 yuan / ton this week, and the latest external price is about 530 US dollars / ton FOB Korea and 548 US dollars / ton CFR China. It is expected that the PX market in the short term will be slightly reduced. In terms of PTA market, this week’s market price fell back. The domestic PTA spot market price is about 3577 yuan / ton, and the external price is about 446 US dollars / ton CFR China. It is expected that PTA price will continue to decline slightly next week. In terms of ox market, Sinopec’s o-benzene quotation is stable, with the price of 4400 yuan / ton. The external price of o-benzene is about 510 US dollars / ton FOB Korea and 535 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 business society believe: in the short term, OPEC + production reduction, total number of oil drilling in the United States and EIA, API inventory data in the short term. In the medium term, on the demand side, the economic and trade situation in Europe and the United States, the geopolitical situation between China and the United States, and the continuous deterioration of the global second epidemic situation have an impact on the economic restart of crude oil demand and the recovery progress of the industrial chain. Next week, we will focus on the impact of the continued spread of overseas epidemic on the demand for crude oil due to the economic restart and recovery, as well as the progress of the European and American economic recovery rescue plan. On the whole, it is expected that xylene prices in the domestic market will continue to fluctuate slightly next week.