SunSirs: Supported by Costs, CPL Prices Were Firm (January 4-10)

Price trend

According to the monitoring data of SunSirs, the average ex-factory price of domestic liquid CPL was 14,100 RMB/ton on January 4, and the average ex-factory price of domestic liquid CPL on January 10 was 14,100 RMB/ton. CPL prices were stable this week.

Analysis review

This week, the overall market of CPL ran smoothly, the spot price remained stable, and some companies raised their ex-factory prices. The price of raw material pure benzene rose, and the cost side was favorable for CPL. Downstream enterprises began to increase the demand for CPL. As of January 10, Sinopec's liquid CPL price was 14,500 RMB/ton. The price of Baling Hengyi’s liquid CPL was 14,500 RMB/ton, and the 450,000-ton/year unit was normally operated. The price of CPL liquid of Baling Petrochemical’s was 14,500 RMB/ton, and the 450,000-ton/year unit was operating normally. Shandong Luxi Chemical had no quotation for liquid CPL liquid, and the annual production capacity of the manufacturer is 300,000 tons. Shandong Hailigong had no quotation for liquid CPL yet, and the annual production capacity of the manufacturer is 200,000 tons. The price of Shandong Hualu Hengsheng’s liquid CPL was 14,100 RMB/ton, and the manufacturer's installation capacity is 300,000-ton/year.

The raw material pure benzene returned after the holiday this week, and pure benzene rose and then fell. Affected by the public health incident, the arrival of pure benzene in the early stage was affected and delayed, and the inventory decreased slightly. The downstream replenishment sentiment was strong, and the rise in international oil prices had also brought positive boosts, and the market price of pure benzene had continued to rise. With the weakening of the positive support, the pressure on the stock of pure benzene ports had become prominent, coupled with the decline of downstream styrene, the market focus fell.

Market outlook

The CPL analyst of SunSirs believes that the current CPL is well supported by the cost, and the downstream has begun to follow up, and the CPL is generally developing for the better. After some enterprise installations are restarted, the supply will increase. It is expected that CPL will rise steadily in the short term.

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