Domestic price trend:

From the trend chart of para xylene, it can be seen that the price trend of para xylene increased in December. As of the end of the month, the domestic ex factory price of para xylene was 8600 yuan/ton, an increase of 3.61% compared to the initial price of 8300 yuan/ton, and a year-on-year increase of 15.44%.

In December, the spot supply of xylene was normal, and the domestic PX operating rate remained above 80%. However, there were still some equipment repairs, and there was little change in spot supply. In December, international crude oil prices fluctuated and declined, and the country cancelled the preferential tax rate for imported PX from Taiwan. As a result, the price of PX in the foreign market rose. As of the 28th, the closing price in Asia was 1002-1004 yuan/ton FOB South Korea and 1027-1029 US dollars/ton CFR China. Recently, the operating rate of PX plants in Asia has been maintained, and overall, the operating rate of xylene plants in the Asian region is around 80%. The supply of PX goods in the Asian region is normal, but the domestic xylene market prices have increased due to the rise in foreign prices.

The overall trend of international crude oil prices in December has declined. As of the end of the month, the settlement price of the main WTI crude oil futures contract in the United States was $71.77 per barrel, and the settlement price of the main Brent crude oil futures contract was $77.15 per barrel. The crude oil price in December fell by 5.52%. Firstly, the economic data is poor, and the news is bearish for the oil price market. The duration of the Federal Reserve maintaining high interest rates may be extended, and a long-term high interest rate environment may slow down economic growth and suppress energy demand. The unexpected rise in inflation data has further exacerbated the already weak oil market, exacerbating the decline in crude oil. Secondly, the results of the OPEC+production policy meeting did not meet market expectations, and the reduction in production was not as expected. In addition, the voluntary reduction in production is questionable, and the supply side is facing greater pressure in the future. However, due to geopolitical tensions, the transportation of Red Sea vessels has been hindered, affecting the supply of crude oil and providing some support for international oil prices. The combined effects of long and short positions have led to a decline in the overall trend of crude oil prices, with limited price increases in the domestic xylene market.

The domestic PTA spot market in December showed an upward trend, with an average price of 5953 yuan/ton in the East China market as of the end of the month, an increase of 4.90% from the price of 5675 yuan/ton at the beginning of the month. From the recent changes in PTA equipment, four sets of main suppliers in East China with a total annual production capacity of 10.8 million tons (design capacity) have seen a decrease in PTA equipment load to 70%. At the same time, one set of 1.2 million tons of PTA equipment in the northwest has been shut down. During this period, the operating load of the PTA industry has been reduced to around 78%, and unplanned PTA equipment load reduction and shutdown indirectly supported the PTA market. Downstream polyester enterprises have completed the raw material replenishment in December, with polyester production stable at around 86%, and the overall accumulation pressure of products is obvious. In terms of polyester, cost support is good, and mainstream factories in the Jiangsu and Zhejiang regions continue to raise their prices. At the end of the month, factories have a positive attitude towards shipment, and the market transaction focus is strong. However, under the seasonal off-season background, the terminal elasticity, weaving, and printing and dyeing start-up rates have partially declined to below 72%. Affected by the rising trend of PTA market prices, the domestic market price of xylene has risen.

Chen Ling, an analyst at Business Society PX, believes that the current bullish and bearish game in the crude oil market is mainly characterized by range fluctuations in crude oil prices. In recent times, the downstream PTA market trend has risen, and there has been no significant improvement in demand in the textile industry. The increase in orders is not significant, and some terminal textile companies are also relatively cautious. Overall, it is expected that the price trend in the xylene market will remain stable in the later period.