SunSirs: Commodity Chemicals: Domestic Xylene Price is Temporarily Stable on 14th November

On 14^th November, the PX Commodity Index was 54.40, which was the same as yesterday. It was 46.88% lower than the highest point at 102.40 on 28^th February 2013 in the cycle and 19.43% higher than the lowest point at 45.55 on 15^th February 2016 in the cycle (Note: The cycle refers to since 1^st February 2013).

According to data from SunSirs, on 14^th November, the domestic xylene market price trend was temporarily stable. Company such as Hongrun’s 600,000 tons of new equipment was operating stably. The on-site installation of plant in Pengzhou petrochemical Co.,Ltd. operated stably. Urumqi petrochemical Co. Ltd. plants run at 50%. Fuhaichuang Co.,Ltd. run a production line for aromatic hydrocarbon. China National Offshore Oil Corporation (CNOOC) in Huizhou had overhauled their refinery equipment. Hengli Petrochemical Co.,Ltd. PX unit was put into operation. The other units were temporarily stable. Due to the normal supply of the new unit to the domestic xylene market, the price of xylene was temporarily stable. The operating rate of PX devices in Asia was around 80%. On 13^th November, the closing price of the xylene market in Asia fell by US$ 2/ton, and the closing price was US$ 768-770/ton FOB Korea and US$ 788-790/ton CFR China. More than 50% of domestic needs are satisfied by import. The increasing price of external prices has a certain positive impact on the domestic xylene market prices, but the price trend of it is temporarily stable.

On 13^th November, the US WTI crude oil futures market price increase to US$ 57.12/barrel, an increase by 0.32 US dollars. Brent crude oil futures prices increase to US$ 62.37/barrel, an increase by 0.31 US dollars. The inventory of API crude oil unexpectedly decreased slightly, but both gasoline and refined oil inventory increased. The API announced that till 8^th November, US crude oil inventory fell to 440 million barrels by 541,000 barrels. SunSirs’ analysts expect an increase of 1.6 million barrels in the later period. The stock in Cushing decreased by 1.2 million barrels. In generally, the price of crude oil prices rose and domestic xylene price was stable.

Recently, the textile industry fluctuated and the operating rate of the PTA market declined with the PTA price trend remaining low. The average price in the East China region was RMB 4,700-4,800 yuan/ton excluding transportation cost. Up to 13^th November, the domestic PTA operating rate was about 91.5%. The operating rate of the polyester industry is around 89%. Due to the sufficient supply in the PTA field and fair trading atmosphere, the buying order is dominated by traders and followed by sporadic polyester factories. The price of the downstream PTA market is slightly lower due to the fluctuation of crude oil price. It is expected that the PX market price will remain at RMB 6,800 yuan/ton within a short period of time.

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