Fluctuations in oil prices increase, catalyzing the recovery of xylene market

Bulk data show that domestic xylene market prices have risen this week. On November 29, the price of xylene was 3640 CNY/ton, and the latest price of xylene has exceeded 4000 CNY/ton.

Xylene market is picking up

It is understood that xylene is widely used as a solvent in coatings, resins, dyes, inks and other industries; used as a synthetic monomer or solvent in industries such as medicine, explosives, and pesticides; it can also be used as a component of high-octane gasoline and is an organic chemical Important raw materials.

This week, the domestic xylene market was mainly supported by crude oil and showed a broad upward trend. Driven by multiple positive factors, crude oil prices swept the haze this Monday, showing an upward trend of volatility as a whole.

The industry analysts believe that the xylene market is mainly observed from two aspects. On the supply cost side, the implementation of OPEC+ (Petroleum Exporting Countries oil producing allies) production reduction, the total number of US oil rigs and the weekly EIA (US Energy Information Administration) inventory Data; second look at the demand side, the impact of the global epidemic on crude oil demand, the progress of industrial chain recovery, the economic and trade situation in Europe and the United States, and the progress of the economic recovery rescue plan. On the whole, the domestic market for xylene is expected to continue to rise.

On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its oil-producing allies (OPEC+) announced the maintenance of production restrictions, which provided momentum for rising oil prices. On the demand side, the outlook for global crude oil demand provides support to oil prices. The two superimpositions have caused the overall level of international oil prices to rise from US$40 to US$46 per barrel to US$46 to US$50 per barrel. Industry analysts believe that as the economic outlook improves, it is foreseeable that under the bullish optimism and market stimulus, there is still room for further increases in international oil prices in the future.

Goldman Sachs stated in a recent oil research report that “OPEC+ will focus on delaying production and destocking, which strengthens our confidence in a stable and sustainable rise in oil prices before 2021. We will continue to maintain our The 12-month price of Brent crude oil is expected to be US$65 per barrel."

5 xylene concept stock market earnings ratio is less than 20 times

According to statistics from Securities Times and Databao, 14 of the A-share companies are involved in xylene business. Since December, the overall xylene concept stocks have had no outstanding performance. Data shows that 80% of concept stocks have fallen in the past 7 trading days, but the decline is relatively small. Judging from the current valuation level, the earnings ratio of the five xylene concept stocks is less than 20 times, namely Hengyi Petrochemical, Jinneng Technology, Donghua Energy, Tongkun Stock, and Guangxin Stock. Hengyi Petrochemical has the lowest price-earnings ratio at 11.31 times. The company achieved a profit of 3.057 billion yuan in the first three quarters, a year-on-year increase of 38.09%.