1、 Price trend

The domestic xylene market fell slightly this week. As of Friday, the domestic average price was about 3450 yuan / ton, down 0.58% month on month.

2、 Analysis and comment

Xylene prices fell slightly this week. Sinopec’s enterprises in South China have lowered the price of xylene by about 50 yuan / ton this week. The port inventory is still high. At present, the port inventory in East China is about 134000 tons, down about 9000 tons compared with last week. However, there is still pressure to go to the warehouse, and the price is slightly weak. There has been a slight fluctuation in recent years, and there is no improvement. Market oversupply, downstream Px, gasoline blending demand is general. At present, the mainstream price in East China is about 3450 yuan / ton. The future market continued to pay attention to the fluctuation of the US dollar index and the stock market, the impact of the geopolitical situation in the Middle East on crude oil supply, the development of new crown vaccine, the impact of economic restart and recovery on crude oil demand, the global economic recovery and the progress of the European and American economic recovery rescue plan.

Upstream, crude oil, the recent crude oil market volatility is weak, this week international crude oil prices fell. As of Friday, spot Brent fell $0.415/barrel to close at $41.235/barrel, down 1% from last week. Analysts and traders are bearish on the outlook for crude oil next week, according to fx168′s weekly financial market survey released on Saturday (October 24). In addition, the world bank said in its latest half year commodity market outlook report that although energy prices have rebounded, they are expected to stabilize below the pre epidemic level. The average price of crude oil in 2021 is US $44 per barrel, higher than US $41 per barrel in 2020.

Downstream, in terms of PX market, the listed price of domestic Sinopec’s enterprises was about 4450 yuan / ton this week, and the latest external price was about 533 US dollars / ton FOB Korea and 551 US dollars / ton CFR China. It is expected that the short-term PX market will maintain a small fluctuation trend. In terms of PTA market, the market price dropped slightly this week. The domestic PTA spot market price is about 3450 yuan / ton, and the external price is about 446 US dollars / ton CFR China. It is expected that PTA price will maintain a small fluctuation 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 535 US dollars / ton FOB Korea and 560 US dollars / ton CFR China. It is expected that the price of o-benzene will continue to fluctuate slightly 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 second outbreak of global epidemic on crude oil demand, the progress of industrial chain recovery, the geopolitical situation in the Middle East and China, and the economic and trade situation in Europe and the United States. Third, look at the dollar index and stock market linkage. 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, it is expected that xylene prices in the domestic market will remain weak and stable next week.