Heavy Turnarounds, Sluggish Demand Reshape China’s Aromatics Trade

A combination of extensive domestic plant maintenance and prolonged weak demand in downstream derivative sectors reshaped China’s aromatics trade flows in May, with imports of paraxylene, mixed xylenes and benzene falling, while toluene exports surged as production rose.

PX imports slipped 30.6% month on month to 481,753 metric tons on the back of persistent sluggish demand in the downstream purified terephthalic acid or PTA market, the latest customs data shows.

Beyond the traditional June demand lull in the fiber and yarn sectors, the anticipated summer surge in downstream polyethylene terephthalate failed to materialize. As a result, total polyester demand underperformed compared to last year’s levels and had a trickle-down effect on the PTA and PX sectors.

Average Chinese polyester plant operating rates fell significantly in 2026 compared to 2025, as widespread production cuts were triggered by a combination of lower profit margins and feedstock shortages stemming from geopolitical tensions in the Middle East. As of June 18, average polyester plant operating rates stood at 78.8%, down about 12.8 percentage points on year, while average PTA plant operating rates slipped 10.9 percentage points over the same period to 69.2%. While some market participants attributed the reduced PTA run rates to heavy second-quarter maintenance, others argued that weak downstream polyester demand was the primary driver behind both declining PX imports and surging PTA exports. Consequently, China’s PTA exports rose 12.1% month on month to 326,088 mt, the latest customs data shows.

Mirroring the lackluster demand in the PX market, MX – a raw material used to produce PX — witnessed a dramatic shift in trade flows in May. With local PX plants such as Dongying Weilian Chemical’s 980,000 mt/year plant in Shandong, Fujian Fuhaichuang Petroleum Chemical Industry’s 800,000 mt/year plant in Fujian, Ningbo Zhongjin Petrochemical’s 1.6 million mt/year plant in Zhejiang and Qingdao Lidong Chemical’s 1 million mt/year plant in Qingdao offline for annual maintenance, MX demand tapered down sharply.

Subsequently, MX imports plummeted from 9,540 mt in April to an astonishing low of 0.054 mt in May, while exports surged from a mere 14 mt in April to 6,051 mt over the same period, temporarily flipping the country from a traditional net importer to a net exporter. This abrupt shift puzzled several market participants as domestic MX prices are typically higher than South Korean export prices. According to OPIS data, May monthly average east China MX prices stood at 7,210.50 yuan ($1,063.06)/mt ex-tank, down 3.3% month on month. This is about 1% higher than FOB Korea prices, which averaged $1,052.70/mt over the same period, OPIS data shows.

Domestic gasoline blending demand for toluene weakened as independent refiners in Shandong cut run rates due to poor margins and rising crude costs. Combined with high gasoline inventories, sluggish retail demand and tight export controls, the need for additional gasoline cargoes decreased, keeping domestic toluene demand largely subdued in May.

Moreover, local toluene production volume has risen due to stronger margins, resulting in refiners shifting production back towards petrochemicals in view of weak gasoline blending demand. This, coupled with low consumption in the downstream toluene diisocyanate sector due to reduced plant operating rates and ongoing maintenance by Changzhou Dahua and BASF, has capped local demand for toluene. As a result, Chinese sellers turned to overseas markets in a bid to clear their rising inventory levels. China’s toluene exports surged 55.3% month on month to 129,850 mt, customs data shows.

Despite a 12% drop in China’s benzene production capacity in May due to scheduled maintenance, according to Chemical Market Analytics by OPIS, sluggish demand and poor margins in downstream derivative sectors capped buying interest for upstream benzene. Furthermore, import demand was stifled because local prices remained more favorable than imported costs. OPIS data shows that the May average for the CFR China import parity price — converted from domestic yuan — stood at $1,054.10/mt, compared to the monthly average FOB Korea price of $1,065.67/mt. Following this, China’s benzene imports plunge 46.7% month on month to 234,792 mt.

Meanwhile, ongoing plant maintenance in May tightened styrene monomer or SM availability in China. Key shutdowns included Bora LyondellBasell Petrochemical’s 350,000 mt/year plant in Liaoning, Daqing Petrochemical’s 100,000 mt/year plant in Heilongjiang, and Fujian Gulei Petrochemical’s 600,000 mt/year facility. Amid the supply squeeze, China’s SM exports fell 2.8% month on month to 189,860 mt.

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