Due to the impact of external sanctions news and concentrated pre-holiday stockpiling of oil products, toluene and xylene prices at Shandong refineries have seen consecutive and significant increases of nearly RMB 1,000 per tonne. However, the overall market rallied too rapidly, leading to caution among buyers chasing the uptrend. Downstream players mainly focused on inventory digestion and procurement based on actual demand, resulting in a gradual weakening of speculative sentiment. Consequently, refinery prices peaked and then declined. Currently, refinery inventory pressure is limited, and prices are mostly adjusted according to the pre-holiday inventory structure.
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 necessary to pay attention to external news and the impact of related policies, and operate with caution.
