Sep 06, 2023
Since July, China toluene and mixed xylenes markets have been moving upward.
Firstly, the supply side of crude oil has brought positive support to oil prices, and WTI and Brent crude oil prices edge up. Secondly, on June 30, the State Administration of Taxation of the Ministry of Finance issued document No. 11, 2023, Notice on the Implementation Consumption Tax Policy on Some Oil Products, in order to promote the standardized and healthy development of the oil products industry. It is mentioned that the consumption tax on mixed aromatics and mixed C8 will be levied at the rate same as naphtha from July 1. As a result, prices of both oil products and blending components hiked in the beginning of July. In addition, port inventory of toluene and MX has been quite low with limited cargo arrivals, and supply remains tight in July.