Impacted by external sanctions news and concentrated pre-holiday stockpiling of oil products, toluene and xylenes prices at Shandong refineries have experienced consecutive and substantial increases of nearly RMB 1,000 per tonne. However, the overall market rallied too rapidly, prompting caution among buyers. Downstream players primarily focused on inventory digestion and procurement based on actual demand, resulting in a gradual weakening of speculative sentiment. Subsequently, refinery prices retreated after peaking. Currently, refinery inventory pressure is limited, and prices are mostly adjusted according to pre-holiday inventory structures.
As the Spring Festival holiday approaches, long-distance transportation is restricted, and stockpiling activities are gradually coming to an end. Overall demand is gradually decreasing, and some refineries still need to maintain low operational levels, which will ease supply pressure. It is essential to keep a close eye on external news and the impact of related policies, and operate with caution.
