Domestic price trend of paraxylene:

From the p-xylene trend chart, it can be seen that the price trend this week is temporarily stable. As of the weekend, the domestic p-xylene factory price was 8500 yuan/ton, which is flat compared to the price of 8500 yuan/ton at the beginning of the week, with a year-on-year decrease of 8.60%.

The domestic paraxylene supply is normal, and the domestic PX operating rate is around 70%. The external dependence of PX products is around 29%, and the recent external price trend of PX has declined slightly. As of the 16th, the closing price of the Asian paraxylene market was 991-993 yuan/ton FOB South Korea and 1016-1018 dollars/ton CFR China. The low external price is negative for the domestic market, and the recent opening rate of PX plants in Asia is normal. Overall, the operating rate of paraxylene plants in Asia is around 60%, and the price trend of the domestic paraxylene market is temporarily stable.

The price trend of crude oil this week has declined significantly. As of the 16th, the settlement price of the main contract for WTI crude oil futures in the United States was at $68.35/barrel, while the settlement price for Brent crude oil futures in May was at $74.70/barrel. On the macro level, the collapse of a bank in Silicon Valley in the United States, coupled with the disappointing inflation report data in the United States, has raised concerns about financial risks in the market. In addition, the anxiety of Credit Suisse has impacted the financial market, putting pressure on risky assets such as stock markets and crude oil, and adding to the negative impact of the unexpected growth of crude oil inventories in the United States, which has subsequently dragged down oil demand, causing crude oil prices to plummet, and maintaining a weak domestic market price for paraxylene.

The price trend of the downstream PTA market has declined this week, with the average PTA market price at 5650-5700 yuan/ton as of the 17th, and the price decline this week was 2.89%. In terms of PTA supply, there are currently many PTA devices undergoing maintenance and production reduction, with the industry starting construction of about 76.5%. Due to the decline in crude oil prices, PTA prices have declined. Downstream polyester production has remained at a high level of over 80%, and domestic orders in spring and summer have increased. Against the backdrop of a moderate recovery in demand, although there is no significant increase, it can maintain a high level of rigid demand. However, foreign trade orders have not improved yet. The factory has reported that there are insufficient new orders, and foreign trade orders at the end of the weaving factory have shrunk. Overall, the downstream market has slowly recovered, and the price trend of paraxylene has temporarily stabilized.

Chen Ling, a PX analyst at the Business News Agency, believes that the current bull short game in the crude oil market has brought some benefits to the recovery of demand in Asia, but there is still a risk of economic recession in Europe and the United States. In the future, the oil market will still face fundamental pressure, and the downstream market of the terminal will still face insufficient demand, as well as an uncertain outlook for foreign trade. The supply of PX market is normal, and it is expected that the price trend in the paraxylene market will temporarily stabilize in the future.