Toluene xylene: crude oil finishing two benzene suspicious wait-and-see

U.S. and European crude oil futures have been climbing since the end of December 2021 amid geopolitical tensions. U.S. crude oil WTI recently hit a seven-year high near $95 a barrel, boosting confidence in the chemical market. After the Spring Festival toluene, xylene market in crude oil and related products market pull up the price of high.

From the supply side, some domestic devices are planned to stop for maintenance at the end of the first quarter, but most of them are in normal production at present, and the domestic supply is stable. In ports, the import volume is stable recently, but the inventory is gradually increasing, and there is a risk of oversupply. From the demand side, the downstream coatings such as delay to return to work and production, coupled with high oil prices, profit margins tightened setting cut oil market is only just need to purchase, the downstream weak receiving intention, and the current main market affected by the outbreak of jiangsu zhangjiagang market high-speed road, difficult to pick up the goods, regional circulation, clinch a deal is slow, discourage market. It can be seen that the supply and demand side support is difficult to reach the periphery and the cost is rising fast, limiting the space of two benzene chong high, also lead to two benzene high price less market, poor transaction. This rise is based on unstable, dominated by the trend of other products, supply and demand end follow-up is not timely, so there is a wide shock phenomenon.

At present, the situation of toluene and xylene high price and low market may continue further, but at the end of the first quarter, with the continuous production of the device, the central price of biphenyl is highly likely to fall, the specific trend still needs to pay attention to crude oil and fundamental changes.