The xylene market has shown a notable weakness in prices recently. Market trading activity has been sluggish, and buyers are adopting a cautious mindset.
Domestic xylene production capacity continues to expand, but the growth in downstream demand has failed to keep pace, leading to a loosening of market supply and demand dynamics. In the first quarter of 2025, China’s xylene imports decreased by 4.66% year-on-year, while the import value dropped by 19.29%, reflecting the downward pressure from international market prices being transmitted to the domestic market. Downstream demand for PX and gasoline blending has shown limited improvement. Despite a slight increase in operating rates at some enterprises, overall demand growth has not kept up with supply expansion. Additionally, capacity expansion at refineries in the Middle East has further exacerbated the oversupply situation in the international market.
In terms of costs, crude oil prices have weakened after oscillating at high levels, providing some cost support but failing to offset the pressure from loose supply and demand conditions. The narrowing spread between PX and naphtha prices has put pressure on refining and chemical enterprise profits, prompting some companies to reduce operating rates to alleviate inventory pressures.
In the short term, xylene market prices are likely to continue their weak and volatile trend, with weak bottom-line support. If international crude oil prices continue to decline or if downstream operating rates do not improve significantly, there is a risk of further price declines. It is advisable to monitor developments from OPEC+ meetings and the impact of geopolitical situations in the Middle East on crude oil supply.
