It is very hard for CPL plants to yield in prices further

3. CPL profit

In the above chart, CPL profit margin based on spot benzene cost has been condensed to around 200-300yuan/mt, close to the rate in mid-Jun 2019, when CPL price was as low as 11,300-11,500yuan/mt. It is very hard for CPL plants to yield in prices further.

Based on all the factors stated, CPL price is considered around a bottom place, and it is difficult for CPL to fall further, unless benzene prices decline. But looking into September, benzene market is relatively strong and CPL plant are slowly restoring supply, but their inventory may not by accumulated as fast as downstream expects.