Industry Overview - The price of xylene with a purity of ≥96% in China is projected to be 6965.37 yuan/ton by the end of 2024, reflecting a month-on-month decrease of 0.57% and a year-on-year decrease of 7.13% [1][9] - Despite the release of new domestic xylene production capacity, downstream demand growth remains stable, leading to a relaxed supply-demand relationship and price suppression [1][9] Industry Development History - The xylene industry in China has undergone five key phases, starting from the introduction of technology in the 1950s to the current focus on green transformation and high-end development [4][5] - The industry saw significant capacity expansion and technological advancements, particularly in the 2011-2020 period, with private enterprises entering the market and achieving breakthroughs in production technology [5][6] Current Industry Status - The xylene industry is characterized by an oligopolistic competition structure, with major players like Sinopec and PetroChina leading the market, while private companies like Hengli Petrochemical and Rongsheng Petrochemical are also gaining ground [13][15] - The self-sufficiency rate of xylene in China is increasing, with a decline in import dependency; in Q1 2025, xylene imports fell to 2.25 million tons, a year-on-year decrease of 4.66% [11] Key Enterprises Performance - Sinopec has a strong technical foundation and production capacity in the xylene sector, with multiple large-scale production bases ensuring high-quality and stable supply [15] - Rongsheng Petrochemical has established the world's largest single-unit refinery project, achieving significant production capabilities and focusing on sustainable development through investments in carbon capture technology [16] Industry Development Trends - The xylene industry is experiencing simultaneous capacity expansion and structural optimization, with leading companies integrating vertically to enhance their competitive edge [18] - Downstream demand is diversifying and becoming more high-end, with traditional markets facing restrictions while new applications, such as electronic-grade xylene, are growing rapidly [19][20] - The international trade landscape is evolving, with increased costs for exports due to mechanisms like the EU's carbon border adjustment, prompting domestic companies to enhance their low-carbon transition efforts [21]