SunSirs: CPL Market Rose in October under Strong Supports from Upstream and Downstream

Price trend

According to the data of SunSirs bulk list, the average ex-factory price of domestic CPL liquid was 9,333 RMB/ton on October 1, and the average ex-factory price of domestic CPL liquid was 9,800 RMB/ton on October 31. The price increased by 5.00% this month.

Analysis review

Domestic CPL prices rose this month. CPL prices began to rise after small fluctuations in early October. CPL inventory has fallen and supply has decreased. The raw material pure benzene rose, the downstream demand for CPL increased, the upstream and downstream support was strong, and the price of CPL rose. The downstream demand weakened at the end of the month, and the market gradually stabilized. As of the end of the month, Shandong Luxi Chemical's CPL liquid price was 9,400 RMB/ton, with cash leaving the factory, and the manufacturer's production capacity was 300,000 tons/year. Actual transactions can be discussed. The price of CPL liquid in Nanjing Oriental was 10,200 RMB/ton, the 400,000 tons/year plant was operating normally, and the CPL plant was operating normally. Baling Hengyi's CPL liquid price was 10,100 RMB/ton, and the 450,000 tons/year plant started up normally. Baling Petrochemical’s CPL liquid price was 10,100 RMB/ton, and the 300,000 tons/year plant started up normally.

Raw material pure benzene met National Day in early October, and the price of pure benzene stabilized. The return after the holiday, driven by the rise of downstream styrene, prices rose rapidly. The price of pure benzene began to rise after a slight weakening in mid-October. Towards the end of the month, crude oil fell sharply, coupled with the weak fundamentals of pure benzene itself, prices fell weakly. This month, Sinopec North China region raised a total of 300 RMB/ton, and the rest of the region raised a total of 150 RMB/ton.

Market outlook

The CPL analyst of SunSirs believes that the current slow consumption of raw material pure benzene inventory is still under pressure, and downstream follow-up is insufficient and enthusiasm is weakened. After the restart of some enterprises, the supply of CPL will increase. It is expected that the CPL market in November will enter a stable consolidation stage, with small fluctuations mainly within the range.

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