Crude oil prices continue to oscillate at a high level, with a slight market correction at the beginning of the week.
The toluene and xylene markets in East China remain relatively stalemated and will be persisting. Low inventories of toluene and xylene provide market supports, and fundamental changes are limited.
In Shandong, the operations of toluene and xylene in refineries are on the stronger side, influenced by concentrated replenishment orders from major downstream industries and no pressure on refinery inventories. The overall buoyant market is sentiment, reducing cross-regional flow and promoting localized consumption.
Weekly Forecast
As maintenance on some Shandong refinerp units comes to an end, the supply of products is expected to increase. Given the current relatively high market levels of toluene and xylene, there are obstacles to further price hikes. The overall market remains in a stalemate. Close attention should be paid to external news developments and as a correction in prices is anticipated, cautious operation is advised.
