Xylene Prices Spike on Rising Crude Oil Costs and Supply Constraints
SunSirs analysis shows that xylene prices surged last week due to rising costs and supply tightness. International crude oil prices increased, pushing up production costs for refinery reformers. Domestic spot prices rose from 6,903.33 RMB/ton on August 17 to 7,486.67 RMB/ton on August 24, an 8.45% increase.
The market was driven by bullish factors on both the cost and supply sides. Independent refineries in Shandong raised their quoted prices over the weekend, while circulating supplies nationwide remained tight, contributing to spot price rises across various regions.
However, processing margins in downstream sectors weakened, with factories showing little willingness to stockpile at high prices. Traders remained cautious about chasing the rally, resulting in insufficient momentum for further price increases.