1、 Price trend
The domestic xylene market fell slightly this week. As of Friday, the domestic average price was about 3510 yuan / ton, down 1.13% from last week.
2、 Analysis and comment
The price of isomeric xylene dropped slightly this week. Affected by the lower profit margin and lower operating rate of downstream PX manufacturers, the demand for isomeric xylene slowed down and the market transaction was not active. At present, the mainstream price in East China is about 3600 yuan / ton. Due to the weak GDP data of Europe and the United States in the second quarter, demand concerns caused by the new coronavirus epidemic and the deepening impact of geopolitical confrontation, the market continues to pay attention to 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 possible economic recovery rescue plan launched by Europe and the United States.
Upstream, crude oil, this week, international oil prices down, high, fall again, overall maintain a volatile trend. As of Friday, spot Brent fell $0.01 per barrel, or 0.02%, to close at $42.885. The longer the oscillation lasts, the greater the possibility of large fluctuations in the future. Therefore, we must not be paralyzed by the boring market. The future market closely watched the fluctuation and breakthrough of Brent crude oil in the range of 40-44 USD / barrel.
Downstream, in terms of PX market, the listed price of domestic Sinopec’s enterprises is about 4800 yuan / ton this week, and the latest external price is about 525 US dollars / ton FOB Korea and 543 US dollars / ton CFR China. It is expected that the PX market will maintain a stable trend in the short term. In terms of PTA market, the domestic PTA spot market price is about 3570 yuan / ton, and the external price is about 437 US dollars / ton CFR China. It is expected that PTA price will continue to maintain a stable trend next week. In terms of ox market, Sinopec’s o-benzene quotation is stable, with the price of 4400 yuan / T. the external price of o-benzene is about 510 US dollars / ton FOB Korea and 538 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 the overseas epidemic on the demand for crude oil, and the possible economic recovery rescue plans launched by Europe and the United States. On the whole, it is expected that xylene prices in the domestic market will continue to fluctuate slightly next week.