SunSirs: Cost Was Lowered and CPL Priced Dropped (December 4-8)

Price trend

According to the Commodity Market Analysis System of SunSirs, the average market price of domestic liquid CPL on December 4th was 13,162 RMB/ton, and on December 8th, the average market price of domestic liquid CPL was 13,112 RMB/ton. The price of CPL fell by 0.38% this week.

Analysis review

The market price of CPL had fallen this week. The price of raw material pure benzene had been lowered, weakening cost support. Downstream demand had decreased, and procurement was more cautious. The CPL unit was gradually recovering, with an increase in supply. As of the 8th, the market was mainly bearish, and the CPL market continued to weaken. As of December 8th, the settlement self delivery price for Sinopec's high-end liquid premium CPL, this week was 13,400 RMB/ton.

This week, the price of raw material pure benzene had dropped. On December 4th, the price of pure benzene was 6,867 RMB/ton. On Friday (December 8th), the price of pure benzene was 6,703 RMB/ton, a 4.58% decrease from last week. This week, the price of Sinopec's pure benzene was 6,800 RMB/ton (prices in Shandong and Hebei regions fell by 400 RMB/ton simultaneously).

This week, the downstream domestic PA6 market had been operating weakly, with some spot prices adjusted. According to data monitoring by SunSirs, as of December 8th, the domestic benchmark price of PA6 mixture was 14,350 RMB/ton, a decrease of 0.78% from the average price level at the beginning of the month.

Market outlook

SunSirs’ CPL Analysts believe that the CPL market had recently undergone a slight adjustment. The raw material pure benzene market had started to recover, and the downstream PA6 market was not good, resulting in reduced demand. Partial CPL units had been restored, and supply side support had weakened. It is expected that the price of CPL will consolidate narrowly in the short term.

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