The xylene market has recently experienced a loose supply and demand balance, putting downward pressure on prices, which remain at low levels.
On the supply side, new production capacity will be released in the second half of the year, and imports from Japan and South Korea may shift to the Chinese market as the US travel season ends, driving up import volumes. On the demand side, blending demand and PX demand exhibit cyclical rotation, but the weak overseas economic environment and sluggish end-user demand, coupled with a mismatch in the timing of supply and demand increases, have led to repeated price fluctuations. On the cost side, crude oil prices are expected to trend downwards, reducing xylene production costs, but geopolitical risks and peak season demand may bring about temporary rebounds.
The xylene market is dominated by the downward trend in crude oil prices, with a high probability of further price fluctuations, but it is relatively resilient. The price low point may occur in December.
