1、 Price trend

According to the bulk list data of Business Society, the price of mixed xylene showed an upward trend this week. On July 3rd, the benchmark price of mixed xylene was 7340 yuan/ton, while on July 7th, the benchmark price was 7540 yuan/ton, an increase of 2.72%.

2、 Analysis and Review

China and India in the Asian region have driven oil demand growth of over 2 million barrels per day, easing concerns about economic recession in Europe and America; Saudi Arabia has stated that it will extend its voluntary production reduction of 1 million barrels per day for another month, while Russia has also stated that it will reduce production by 500000 barrels per day in August, bringing the total promised production reduction by OPEC+to 5.16 million barrels per day; China and India in the Asian region have driven oil demand growth of over 2 million barrels per day, easing concerns about economic recession in Europe and America.

There is still a possibility of the Federal Reserve raising interest rates in July, and market risks remain; Entering the summer season, the demand for tourism has increased, and the demand for gasoline is strong. The production enthusiasm of the main refinery has increased; The PMI in the United States decreased in June, and investors’ concerns about economic slowdown and energy demand have increased; Under weak supply and demand expectations, PX rebounded weakly, and short-term PX fluctuated with crude oil and downstream PTA.

In terms of downstream px, the price of px has remained stable this week. The benchmark price for PX on July 3rd was 8250 yuan/ton, and on July 7th it was 8250 yuan/ton, with no changes during the week. PX has good profits, the overall load will increase, and the supply side is showing a trend of oversupply. Terminal polyester has entered the off-season, and demand is difficult to improve. PX’s supply and demand expectations are weak, and the rebound is weak. Merchants are worried about the increase in supply, suppressing market strength, and PX will consolidate and operate in the short term.

In terms of OX, this week’s OX consolidation and operation showed average transaction enthusiasm and market stability. On July 3rd, the price of OX was 8100 yuan/ton, and on July 7th, it was 8100 yuan/ton. There was no change during the week, and many neighboring benzene enterprises on the site were in a state of shutdown. The downstream industry of OX entered a seasonal off-season, resulting in a situation of weak supply and demand for neighboring benzene. Overall, the upward momentum of the neighboring benzene market weakened and downward pressure remained. In the future, the neighboring benzene market was weak and stable.

In terms of gasoline, gasoline has seen a significant increase this week, but has fallen back over the weekend. On July 3rd, the benchmark price of gasoline was 8478.60 yuan/ton, and on July 7th, the price was 8730.80 yuan/ton, an increase of 2.97%. As the temperature gradually rises, the demand for gasoline in cars increases, and people travel more during the summer vacation. The tourism industry is booming, and gasoline demand is improving, with gasoline prices running higher.

3、 Future Market Forecast

The main positive factor for mixed xylene this week comes from the production reduction plans of oil producing countries such as Saudi Arabia and Russia to support the market, and July and August are the peak fuel consumption season in the United States, with gasoline demand support still in place; The levying of consumption tax on some related products provides an opportunity for market speculation, and the mixed xylene market takes advantage of this opportunity to rise; The bearish resistance in the international crude oil market has not been eliminated, but the fundamentals have strengthened. The mixed xylene market atmosphere continues to rise, and may continue to rise slightly in the future. Pay attention to the market trends of crude oil and gasoline, as well as the impact of mixed xylene and downstream equipment dynamics, port inventory, and external markets on the price of mixed xylene.