With crude oil remaining high and fluctuating, the toluene and xylene markets have seen price hikes from various refineries, pushing the market center upwards. In particular, Shandong independent refineries are enjoying smooth shipments with low inventory levels, providing support to the market. In East China, as the futures delivery period concludes, market participants are relatively cautious. At present, with prices in the high range, there is a game of wits in the market, and overall fundamental changes are limited. The arbitrage space between refineries and East China has narrowed, reducing cross-regional liquidity, and trade is mainly concentrated in the surrounding areas.
In the short term, toluene and xylene prices are still expected to remain relatively firm. The relatively low inventory levels in East China, at around 30,000 tons below normal, are providing support to the market. However, caution prevails in chasing higher prices, and the market is likely to remain in a stalemate. Close attention should be paid to external news factors and the impact of crude oil trends, and operations should be conducted with caution.
