Oct 08, 2023
Second, the operating rate of CPL is still too high. Although the operating rate of nylon 6 chip plants is not low either, the overall estimation shows a basic balance of supply and demand in CPL. However, without a clear bullish outlook, the balance of supply and demand implies a lack of purchasing crisis, meaning that the initiative in spot trading lies with downstream buyers.
Especially in the Northern China-East China concentrated trading area, since mid-August, all CPL plants in North China such as Shandong and Shanxi have been operating at full capacity. Moreover, since mid-August, the performance of downstream conventional spinning chip has been sluggish, with a cautious and bearish sentiment dominating the market. Therefore, the seller's mentality naturally weakens as they wait and wait.