According to the Commodity Analysis System of SunSirs, as of October 30th, the mainstream factory price of domestic refined and hydrogenated naphtha was 7,881.50 RMB/ton, a decrease of 4.69% from 8,269.00 RMB/ton at the beginning of this month, and the market for refined and hydrogenated naphtha continued to decline.

As of October 30th, the mainstream factory average price of locally refined straight-run naphtha in China was 7,784.00 RMB/ton, a decrease of 4.95% from 8,189.00 RMB/ton at the beginning of this month, and the market for locally refined straight-run naphtha continued to decline.

Product: In October, the price of refined naphtha continued to decline. Currently, the mainstream price of refined and hydrogenated naphtha is around 7,700-7,900 RMB/ton, while the mainstream price of straight run naphtha is around 7,650-7,850 RMB/ton. The gasoline and diesel market has entered the off-season, with the main focus on procurement in the restructuring process. A small amount of demand for ethylene cracking has been released, and there is a lack of substantial improvement in fundamentals. The overall demand for naphtha terminals is weak, with sluggish trading and refineries reducing prices for shipments.

Upstream: The crude oil market continued to fluctuate in October. At the beginning of the month, the situation on the mainland is volatile, and oil prices may intensify volatility, with an increase in amplitude. The mid-term supply-demand game will continue, with tight supply and slowing demand remaining the main themes of oil price trading. The weekly inventory report released by the US Energy Information Administration (EIA) in mid month showed that US crude oil inventories unexpectedly dropped significantly last week, with a more than expected decrease. Coupled with tensions in the Middle East, this has brought a bullish trend to the crude oil market, with prices hitting nearly two week highs. With the strengthening of diplomatic efforts and the easing of tensions between Palestine and Israel, the market has shown some optimism about supply restrictions, and the oil market has come under pressure and declined. Overall, crude oil prices are still at a high level.

Downstream: The toluene market fell significantly in October. On October 1st, the benchmark price of toluene was 8,210 RMB/ton, while on October 27th, the benchmark price was 6,960 RMB/ton, a decrease of 15.23% compared to the beginning of the month. The mixed xylene market significantly declined in October. On October 30th, the benchmark price of mixed xylene was 7,330 RMB/ton, a decrease of 13.66% from 8,490 RMB/ton at the beginning of the month. In October, the price trend of paraxylene decreased. As of the end of the month, the domestic factory price of paraxylene was 8,700 RMB/ton, a decrease of 8.42% compared to the initial price of 9,500 RMB/ton, and a year-on-year decrease of 6.45%.

Energy analysts from SunSirs believe that the international crude oil market is fluctuating and declining, with limited cost support for the naphtha market. The gasoline and diesel market has entered the off-season, and there is no significant benefit for the local refining naphtha terminal. Market trading is cautious, and it is expected that the local refining naphtha market will be mainly volatile in the near future.

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