SunSirs: Cost and Supply Supported, the Price of CPL Increased (September 11-18)

Price trend

According to the Commodity Market Analysis System of SunSirs, the average market price of liquid CPL in China was 13,375 RMB/ton on September 11, and 14,066 RMB/ton on September 18. The price of CPL was increased by 5.17% this week.

Analysis review

The market price of CPL had risen this week. The price of raw material pure benzene had significantly increased, providing positive cost support. The follow-up of downstream demand was cautious and mainly purchased on-demand. The local supply of CPL in the market had decreased, and the supply side had performed well. As of September 18th, the delivery price of Shandong Hualu Hengsheng liquid CPL to East China was 14,400 RMB/ton. Sinopec's high-end liquid premium product, CPL, had a self delivery settlement price of 14,500 RMB/ton.

The price of raw material pure benzene had significantly increased this week. On September 11th, the price of pure benzene was 8,045 RMB/ton, and on September 18th, the price of pure benzene was 8,717 RMB/ton, an increase of 8.35%. This week, the price of Sinopec’s pure benzene was 8,800 RMB/ton.

The downstream PA6 market saw a significant increase this week. The cost side support of PA6 was strengthened. The domestic polymerization plant has stable load, abundant supply, and inventory had been digested. In terms of demand, it was average, but downstream stocking enthusiasm was constrained by high prices. As of September 18th, the domestic PA6 mixed benchmark price was 14,900 RMB/ton.

Market outlook

SunSirs CPL analysts believe that the CPL market was stronger recently. Although the raw material pure benzene had slightly declined after the rise, there was still support from the supply side. It is expected that the price of CPL will continue to remain high and firm in the short term.

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