Since August, the toluene and xylene markets in Asia have maintained the trend of the previous month and maintained a weak trend. However, at the end of this month, the market improved slightly, but it was still weak and maintained more impact trends. On the one hand, the market demand is relatively weak. Both gasoline blending and solvent chemicals are in a tepid state this month. The weak demand leads to the market decline. On the other hand, affected by the poor profit of gasoline cracking, the production load of the enterprise decreased, resulting in the contraction of aromatics production, and the market supply gradually tightened from the early loose. In addition, at the end of the month, the impact of the crude oil market increased, and the supply surface was positive, and the market price stopped falling. Specifically:

Toluene: within one month, the toluene market was first suppressed and then increased. At the beginning of this month, the shock of the international crude oil market weakened, while the Indian and Southeast Asian markets had sufficient supply, weak demand and weak market fundamentals. At the same time, due to shipping problems, the import of toluene from Southeast Asia and India is hindered, and the market supply is expected to rise, resulting in low market price fluctuations. In the middle and late part of this month, the supply of Southeast Asia, India and other regions became increasingly tight. Due to the alleviation of shipping problems in the early stage, import demand has been released to a certain extent. At the same time, with the reduction of cracking unit load of Asian petrochemical enterprises, the market supply is expected to decline, and the fluctuation of international crude oil market rebounds, driving the market price fluctuation.

Xylene: this month, the xylene market as a whole was in a weak and volatile market. At the beginning of this month, due to the decline of international crude oil price and the continued weakness of downstream demand, enterprises lacked confidence in the future market, resulting in the weak market price. At the end of this month, with the international crude oil price and downstream PX rising in the market, the market price rose. However, as the price difference between MX and PX gradually narrowed, the market price of PX to MX returned to a weak position again. Due to the intensified demand concern, other demand performance was weak.

Looking forward to September, affected by the decline in gasoline profit decomposition, more enterprises may join the burden reduction team to reduce production load in the later period. In addition, according to market news, SCG in Luoyong plans to overhaul the cracking unit of olefin company in mid September. The toluene capacity of the enterprise is 100000 tons / year, and the solvent xylene capacity is 60% With a capacity of 50000 tons / year, KPIC plans to shut down the steam cracking unit in Ulsan in September for about one and a half months. The raw materials provided by the cracking unit can produce 70000t / a toluene and 40000 t / a solvent grade mixed xylene. Skglobal chemical’s aromatics plant in Incheon is planned to be closed on September 23 for 40 days of maintenance, involving 360000 T / a of toluene and 520000 T / a of xylene. Therefore, it is expected that the market supply side will continue to decline in September, thus supporting the trend of the Asian market, focusing on the trend of the internal and external price difference and the feasibility of export arbitrage.

Chemwin is a chemical raw material trading company in China, located in Shanghai Pudong New Area, with a network of ports, terminals, airports and railroad transportation, and with chemical and hazardous chemical warehouses in Shanghai, Guangzhou, Jiangyin, Dalian and Ningbo Zhoushan, China, storing more than 50,000 tons of chemical raw materials all year round, with sufficient supply, welcome to purchase and inquire. chemwin email: service@skychemwin.com whatsapp: 19117288062 Tel: +86 4008620777 +86 19117288062