China’s June Aromatics Imports Fall on Plant Restarts, Weak Demand

China’s aromatics imports significantly declined across the board in June, with reductions ranging from 0.9% to a sharp 31%, according to the latest customs data. This was mainly due to subdued domestic demand and a robust increase in domestic supply following the restart of several plants after their annual maintenance turnarounds, industry sources said.

Paraxylene or PX imports in June decreased 0.9% month on month to 765,400 metric tons. This slight reduction was directly influenced by ongoing plant turnarounds at purified terephthalic acid or PTA facilities, which naturally curtailed their demand for PX.

Industry sources noted a gradual decrease in PTA plant operating rates throughout June, dropping from 79.7% at the beginning of the month to 77.7% by June 25. This sustained reduction in PTA production consequently dampened the need for PX imports.

Lower PTA production in China also led to a tightening of its domestic supply. As a result, PTA exports in June declined 3.8% month on month to 255,178 mt.

Mixed xylene or MX imports saw the largest drop, at 30.8% month on month to 87,377 mt in June. Industry sources attributed this plunge to ample domestic supply, as several key domestic MX plants restarted operations in May following their annual maintenance turnarounds, significantly boosting local output. The surge, coupled with the reduced PX demand stemming from lower PTA operating rates, resulted in ample supply in the Chinese market.

Plant restarts in May included Cnooc Huizhou Petrochemical’s three MX plants in Guangdong, with a total capacity of 1.714 million mt/year, following an earlier maintenance shutdown in March; and PetroChina Jinxi Petrochemical’s 200,000 mt/year plant in Liaoning, following an annual turnaround in April.

Despite a steady recovery in benzene consumption in June, overall demand remained subdued due to persistent weak economic margins for most downstream derivatives. Furthermore, rising inventory pressures and market apprehension regarding an abundant supply outlook dampened overall enthusiasm for benzene. As a result, China’s benzene imports in June stood at 354,555 mt, 12.6% down from May figures.

Meanwhile, China recorded no toluene imports in June. While it continued to export its surplus, toluene exports declined 23.4% month on month to 44,855 mt. This drop was primarily due to sluggish demand in the downstream paints and solvents sector, persistent poor toluene disproportionation margins and weak gasoline blending demand, all of which curtailed buying interest.

–Reporting by Serena Seng, sseng@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com