Xylene Prices Rose Last Week, Though Demand-Side Factors Limited the Upside

By SKYSEVEN Chemical Technical Team · 2026-08-26

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According to monitoring by the SunSirs commodity market analysis system, domestic spot prices for xylene surged last week, with the market price level steadily rising. During this period, the benchmark price climbed from 6,903.33 RMB/ton on August 17 to 7,486.67 RMB/ton on August 24—an increase of 8.45% over the week—significantly outpacing the rise in toluene prices during the same timeframe.

Last week's market was driven by bullish factors regarding both costs and supply: international crude oil prices continued to rise, and aromatics futures strengthened across the board during night trading. Over the weekend, independent refineries in Shandong successively raised their quoted prices; coupled with persistent tightness in circulating supplies nationwide, spot prices rose in tandem across various regions. However, processing margins in downstream sectors—such as PX, fuel blending, and coatings—generally weakened; consequently, factories showed little willingness to stockpile at high prices, and traders remained cautious about chasing the rally, resulting in insufficient momentum to further price increases.

Cost Factors: Strengthening Crude Oil Drove Market Upswing

Rising costs were the primary driver behind the significant surge in xylene prices last week. International crude oil prices trended upward amidst favorable geopolitical supply-demand dynamics, immediately pushing up the cost of naphtha feedstock and growing production costs to refinery reformers; consequently, holders and independent refineries grew increasingly firm in their pricing stances. The interconnected environment of the aromatics value chain became evident as toluene and benzene also strengthened; meanwhile, a bullish sentiment dominated the C8 aromatics futures market during night trading, consistently signaling optimism and boosting overall market expectations. Concurrently, Asian market quotes to xylene rose and the import arbitrage window narrowed, dashing hopes to an influx of low-priced imports. This confluence of cost-side bullish factors provided cumulative support, driving domestic spot prices steadily higher. As of August 21, the settlement price to the October contract of US WTI crude oil futures stood at $87.06 per barrel, while the settlement price to the October contract of Brent crude oil futures was $94.39 per barrel.

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