SunSirs: Xylene Continued to Decline This Week (November 28-December 2)
December 07 2022 10:45:24 SunSirs (John)
Price trend
According to the monitoring data of SunSirs, the price of xylene continued to decline this week. On November 25, the price was 7,690 RMB/ton; On Friday (December 2), the price was 7,280 RMB/ton, down 5.33% from last week and up 24.87% from the same period last year.
Analysis review
Due to the weak trend of crude oil, the xylene in the external market fell continuously, and the peripheral news was negative, and the bearish sentiment of the industry in the future market increased. The domestic market negotiation was light, and the downstream followed up just in needed. Under the pressure of negative market conditions, xylene continued its downward trend last week.
On the external side, the price of xylene in Asia fell this week. On Thursday (December 1), the price of xylene imported into South Korea was 836 US dollars/ton, a year-on-year drop of 33 US dollars/ton, or 3.8%.
In terms of crude oil, concerns about the risk of global economic recession remained, and oil demand was under pressure. However, the OPEC+ production reduction rumors and the news that the US crude oil inventory fell more than expected brought good news, and the oil price rebounded after falling in the week. As of December 2, Brent price this week rose by 1.94 US dollars/barrel, or 2.32%, compared with last week; WTI rose by 3.7 US dollars/barrel, or 4.85%.
Downstream: In terms of PX, domestic PX prices fell this week. On November 25, the price was 8,600 RMB/ton, and on December 2, the price was 8,300 RMB/ton, down 3.49% from last week and up 23.88% from the same period last year.
In terms of OX, the price of OX in East China fell this week. On November 25, it was 9,000 RMB/ton, and on December 2, it was 8,500 RMB/ton, down 5.56% from last week and up 28.79% from the same period last year.
In terms of gasoline, this week's gasoline continued its downward trend. The price was 8,082 RMB/ton on November 25 and 7,836 RMB/ton on December 2, down 3.04% from last week and down 0.64% from the same period last year.
Market outlook
In terms of crude oil, major oil producing countries decided to maintain the established production reduction target, and the oil price was somewhat suppressed. Under the background of the risk of global economic recession, energy demand is depressed; However, the supply side is still tight, and the market will remain volatile in the short term. Continue to pay attention to the geopolitical situation, the latest OPEC+ production policy, the stock dynamics of U.S. crude oil and refined oil, and the impact of global economic conditions on crude oil prices.
The market fundamentals are poor, and the trend of crude oil is weak in the short term. It is expected that xylene will continue to operate in a weak way in the short term. Pay attention to the market trend of crude oil and gasoline, the impact of xylene and downstream device dynamics, port inventory, and external market on the price of xylene.
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