Strong demand motivates the increase of CPL price

Because of the strong demand of the polyamide market in the downstream, since last December, the CPL price is increasing greatly in China. By the beginning of this year, parts of the contract price had been over 3, 000 dollars/ ton. Some market participants analyzed that, if the supply-demand situation went on like this, the price would still keep increasing in Asian Market. The CPL price was 2, 800 dollars/ ton at the beginning of Dec in Asia, while it was up to 2, 860 dollars/ ton in the mid.

When American Honeywell, Dutch DSM and France Rhodia announced that they encountered the force majeure, the market price immediately broke through the mentality level, 2, 900 dollars/ ton and up to 2, 920 dollar/ ton on Dec, 24. After the New Year, due to the high operation rate of the nylon industry in China, the CPL demand became very intense. The main Asia CPL supplier- UBE expressed that if the market supply-demand relationship continued, the price would climb up to 3, 050- 3, 100 dollars/ ton in Asia.