Xylene prices are currently under pressure, fluctuating generally within a low range. Domestic xylene production capacity has been hindered, with new plant commissioning delayed. Coupled with limited import supply, supply pressure has eased somewhat. However, capacity expansion in the downstream PX (paraxylene) industry is providing some support for paraxylene demand, but the overall supply-demand landscape remains relatively loose.
On the demand side, there is uncertainty regarding the impact of high summer temperatures and environmental protection policies on blending demand. While the PX industry is expected to maintain strong demand driven by domestic demand stimulus and price differential correction, this growth in demand will struggle to absorb the increase in supply. On the cost side, the downward shift in crude oil prices is reducing support for xylene production costs, leading to a pessimistic market outlook.
The xylene market faces the dual pressures of growing supply and weak demand, and prices are likely to continue their weak downward trend. Attention should be paid to crude oil price fluctuations and the pace of downstream PX production.
