Hot Topics This Month
Domestic o-xylene plants are undergoing concentrated maintenance, sustaining the tight supply situation.
Geopolitical conflict has reignited in the Middle East, with international crude oil driving a rebound in commodity futures market prices.
Monthly Market Analysis
Table 1: Monthly price overview of o-Xylene and Phthalic Anhydride (Unit: yuan/ton)
| Product | Region/Route | Current-period Average | Previous-period Average | Year-ago Average | MoM | YoY |
|---|---|---|---|---|---|---|
| o-Xylene | Jiangsu | 8579 | 8060 | 6438 | 6.44% | 33.26% |
| Phthalic Anhydride | Jiangsu (o-xylene route) | 9179 | 8393 | 6174 | 9.36% | 48.67% |
| Hebei (naphthalene route) | 8003 | 7693 | 5976 | 4.03% | 33.92% |
Data source: Chempricehub Information
In August, domestic o-xylene market prices trended upward, with cost-side and supply factors being the main market drivers. During the month, due to concentrated plant maintenance, the tight domestic o-xylene supply situation continued and became the main factor underpinning the market. In mid-to-late August, as US-Iran conflict reignited, international crude oil drove commodity futures market prices higher, strengthening cost-side support. Combined with a sharp rise in the downstream phthalic anhydride market, this provided a strong boost and pushed the domestic o-xylene market to rebound upward.
Analysis of Market Influencing Factors
Status of domestic o-xylene plant maintenance.
USD-denominated o-xylene market price conditions.
Downstream phthalic anhydride market prices.
Forecast for the Next Month
Overall, the main contradictions in the domestic o-xylene market in September are likely to center on supply and cost. As plant maintenance draws to a close, the tight domestic supply situation will ease to some extent, weakening the previous key market-supporting factor and putting some pressure on the market. Domestic o-xylene prices are therefore expected to decline in the next period. Weakening cost-side support may also add downward pressure. On the supply side, the overall operating rate of the o-xylene industry is expected to rise significantly in the coming period, alleviating the supply gap to some extent. On the demand side, the leading downstream phthalic anhydride industry is expected to see higher operating rates due to increased o-xylene supply, while anticipated export demand growth will also contribute to the increase in demand.
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