SunSirs: Raw Materials Fell, and CPL Continued to Drop (November 15-21)

Price trend

According to data from SunSirs’ bulk list, the average domestic liquid CPL price was 15,200 RMB/ton on November 15 and the average domestic liquid CPL price was 14,800 RMB/ton on November 21. CPL prices fell 2.63% this week.

Analysis review

The price of CPL raw material pure benzene dropped sharply this week, and the CPL market continued to drop. As of November 21, Sinopec’s CPL liquid price was 14,800 RMB/ton; Baling Hengyi’s CPL liquid price was 14,800 RMB/ton, and the 450,000-ton/year plant was operating normally; Baling Petrochemical’s CPL liquid price was 14,800 RMB/ton, and the 300,000-ton/year plant was operating normally; Shandong Luxi Chemical had no quotation for liquid CPL liquid, and the factory has a production capacity of 300,000 tons/year, the actual transaction could be negotiated; Nanjing Fubont Dongfang’s CPL liquid price was 15,000 RMB/ton, 6 months, and the factory has a production capacity of 400,000 tons/year.

The raw material pure benzene continued to fall this week, and the price fell broadly. Crude oil fluctuated and fell this week, prices weakened broadly, and cost support collapsed. News within the week that the No. 4 atmospheric and vacuum unit of Zhejiang Petrochemical Company had been put into use, and the supply of pure benzene would increase in the later period; downstream purchase enthusiasm was not high, Shandong geo-refining enterprises had accumulated inventory, ships had arrived at the port in East China, and the main port inventory had increased; the continuous decline of downstream styrene also suppressed the market mentality. This week, Sinopec's price of pure benzene was lowered by 600 RMB/ton twice to 6,950-7,000 RMB/ton.

Market outlook

The CPL analyst of SunSirs believes that the current trend of raw material pure benzene is sluggish, and the price has fallen sharply, and the decline may continue next week. Due to insufficient cost support, negative factors on the market have increased, downstream purchases have been cautious. The price of CPL is expected to move downwards weakly in the short term.

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