Toluene and mixed xylenes affected by plant operations

In Nov-Dec, there will be several reformers and crackers either shut for maintenance or restart.

Earlier in Oct, some plants, such as CNOOC Daxie, ZPC Phase II and Sinopec Fujian underwent maintenance, and in early Nov, some plants cut operating rate unexpectedly. As of late Nov, those plants, unexpectedly cut operating rates, have gradually recovered.

The operating rates of toluene and mixed xylenes dropped but then rebounded during Oct-Nov. During late Nov to Dec, CNOOC Daxie and Sinopec Fujian are poised to complete maintenance and restart, while CNPC Guangxi plans to shut for maintenance. With capacity restarts outpacing maintenance, plant operating rates are anticipated to further increase.

Sinopec INEOS (Tianjin Nangang)' new cracker and Yulong Petrochemical's fresh reformer have started production, and Yulong is slated to start its new cracker in end-Nov, contributing increase in production. In Nov, the amount of toluene cargoes arriving at East China is large, and tank inventory at coastal regions has increased slightly. However, shipments of MX to East China were limited, as imported MX cargoes reduced and consumption of MX at PX plants increased.

MX price is recently relatively firm, on account of fewer cargoes arrivals combined with demand for MX as blending component as well as good profit of PX based on MX. However, toluene is in the lack of support despite improvement in TDP margin, as demand for toluene in blending is slack. MX is expected to keep steady-to-strong in the near term.