China's mixed-xylene spot price at highest level since 2014

摘要

Supported by the recent crude oil price rally and low inventory levels, China’s mixed xylene spot price closed Tuesday at 6,680-6,700 renminbi/ metric ton, a level not seen since November 2014. This is equivalent to $867/metric ton on an import-parity basis. Sinopec raised its mixed- xylene list price this morning at its southern China subsidiaries-at Guangzhou, Maoming, and Zhanjiang-by 300 renminbi or 4.8% to 6,450-6,500 renminbi/metric ton. This is equivalent to $836-842/met- ric ton on an import-parity basis. The spot market, however, continued to climb, hitting 6,600 renminbi/metric ton by noon before eventually closing at 6,680-6,700 renminbi/metric ton or $867/metric ton on an import-parity basis. Market sources say that the higher prices were dictat- ed by sellers amid tight supply and low inventory levels. In coastal Chinese regions, mixed-xylene inventories continued to decline, falling to 35,600 metric tons last week, down 7,800 metric tons or 18% week on week. This is the lowest level since the Lunar New Year holidays in February. Chinese mixed-xylene import activities have been curbed as domestic prices have been almost on a par with, or lower than, FOB Korea prices. With crude oil prices rallying since April, gasoline-blending demand has also increased while supply remained stagnant. However, as Chinese mixed-xylene prices surge, domestic levels are now almost $30/metric ton higher than FOB Korea, allowing for import activities to resume.