the operating rate of CPL is still too high

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.

the rebound in the profitability of ammonium sulfate since July has provided some subsidies to CPL producers
Demand is unlikely to see a significant decline in September compared to August

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