supports from cost and tight supply

In early October, the rise in CPL was mainly driven by the rise in oil prices during the National Day period. But in the middle of the month, crude oil and benzene prices were pulled back, while a number of CPL production suspension, including Yangmei, Lubao, Risun, etc., had pushed up spot CPL further. The supporting factor for CPL market had transitioned from the cost side to the supply side.

As CPL supply is difficult to recover in short, and downstream new polymer plants including Hualu Hengsheng and Shandong Juheshun are expected to start up in October, CPL plants are free of inventory pressure. Thus prices were sustained firm in the first half of the month.

But in the second half of the month, as downstream have suffered losses, CPL plants also begin to yield in prices in order to trade normally.