O-xylene market rises sharply in 2021

O-xylene price trend in China

2021 o-xylene market rose sharply in 2021 o-xylene product market prices high, in the first half of the macro factors become the main factor to drive the market rebound, the Spring Festival vacation, global inflation expectations superposition peripheral force majeure influence, petrochemical plant surge in commodity futures market, market speculation atmosphere, The domestic o-xylene market is rising rapidly. In early March, the mainstream market price of o-xylene in East China reached 6,500 CNY/ton, up 1,500 CNY/ton compared with the beginning of the year, or 30%.

After March, the demand level factor returned to the leading factor of the market. With the continuous maintenance of downstream phthalic anhydride devices, the profits of the naphthalene anhydride superimposed with industrial naphthalene as raw material expanded, resulting in the decline of the advantage of the phthalic anhydride with o-xylene as raw material, which intensified the shrinking degree of the demand for o-xylene. On the other hand, the low-priced imported o-xylene sources also concentrated in a large number of big ports during this period. With the decline of downstream demand, port inventory rapidly accumulated, and the inventory of east China main port exceeded 60,000 tons, a new high in more than five years.

Under the influence of the back pressure of demand and high inventory, the domestic o-xylene market has a rapid correction trend. O-xylene products fell from a high of 6,500 CNY/ton in early March to 5,400 CNY/ton in early April. However, from the middle and late April, the cost factor dominated the market. Driven by the cost, the supply of superimposed o-xylene was tight, and the domestic o-xylene products started to rebound, and the o-xylene product market rose again to around 6200 CNY/ton.

From the middle of May to the end of July, the downstream phthalic anhydride industry was subject to intensive overhaul, and the downstream phthalic anhydride industry continued to suffer losses, and the reverse pressure of p-xylene market increased gradually. The o-xylene inventory in superimposed ports was slowly destocking, and the domestic o-xylene products entered a long-term horizontal consolidation situation.

Into August, the domestic market of o-xylene break sideways, slow market, supply factors become the main factors, at this stage the market upward from the upstream aromatics industry chain cost face the strong support, and PX - weather spreads widened, thus resulting in a decline in domestic petrochemical factory production o-xylene intend, stack reduce import goods to the port, Also led to a rapid decline in port inventory, market control strength strengthened, in the main petrochemical plant adjustment, market prices again into the upward channel.

After entering in October, in the international crude oil under continuous lift, drive cost surface rapidly, and under the influence of inflation expectations, usher in a new surge in commodity futures market, the superposition of the downstream benzene anhydride market boom, downstream adjacent benzene anhydride industry profits soar, also drive the consumption of o-xylene, cargo price raise, o-xylene domestic product for quickly pull litre, East China main spot o-xylene market price rose to 7200 CNY/ton, a new high point in the year.

Data statistics show that the average price of o-xylene products in 2021 is 6011 CNY/ton, up 1257 CNY/ton, or 26.44%, compared with 4754 CNY/ton in 2020. The lowest price of o-xylene products is 4700 CNY/ton in early January, and the highest price is 7200 CNY/ton in late October. By October 31, 2021, the transaction price of o-xylene products in East China mainstream is 7,200 CNY/ton, which is up 44% compared with 5,000 CNY/ton in the same period of 2020.