Last week, crude oil prices continued to rise, and coupled with the introduction of related economic policies, the overall market enthusiasm was further boosted. Toluene and xylenes increased simultaneously, leading to a decrease in low-priced resources in the market. Pre-Spring Festival stockpiling concentrated in the middle to late part of this month, and the market atmosphere was vigorous. In addition, the opening of the export arbitrage window for toluene in the international market and other favorable factors provided support, shifting the focus upwards.
This week, it is predicted that toluene and xylenes in the East China region will be on a stronger trend. Arbitrage opportunities exist in both domestic and international markets. Some refinery plants engage in toluene disproportionation, resulting in relatively tight resource supply. In the short term, there are still expectations of further price increases. However, as the market continues to rise, the influence of profit-taking cannot be overlooked, which may lead to a pullback after hitting highs. Close attention should be paid to the impact of external news, and operations should be conducted with caution.
