PVC market is stable

Since August, the price of PVC has been relatively stable, and the PVC price of calcium carbide method in East China has remained at a level of RMB 7,200 to RMB 7,300 per ton, while the price of PVC product from ethylene method is RMB 200/ton higher than that of calcium carbide method due to the recent oil price. To the low of around US$72/barrel, Ethylene PVC products currently have a certain competitive advantage.

According to the statistics report issued by the Customs for the first 7 months, the import volume of domestic PVC products continued to decline drastically, while the number of exports showed a significant growth trend. The main export increment markets were Russia and Central Asia. Under the current circumstances, the domestic PVC market is in a serious surplus. Except in regions rich in natural resources such as Xinjiang, Qinghai, and Inner Mongolia, most calcium carbide process PVC production enterprises have lost money due to the increase in the cost of calcium carbide procurement and the increase in environmental protection input costs. More serious. In particular, the calcium carbide process PVC manufacturing enterprises, which are located in the eastern coastal areas and do not have resource advantages, have basically stopped production completely. Most of the companies that produce PVC by the ethylene process show a certain competitive advantage because of lower oil prices and lower costs.

The main reasons for the current pattern of this type of PVC enterprises are: First, the international oil prices are relatively low, which is quite favorable for increasing the competitiveness of ethylene products in PVC production; Secondly, domestic attention to coal safety directly leads to coal The production cost has increased substantially, which has led to an increase in the cost of calcium carbide process PVC production. At the same time, due to the country’s increased efforts to rectify environmental hazards, it has also directly increased the input cost of calcium carbide process PVC production; finally, the rise in domestic electricity prices has affected the development of calcium carbide. The impact of PVC production costs is much higher than ethylene PVC products. These three factors lead to a considerable part of the current domestic calcium carbide process PVC production enterprises have been at a loss, so the domestic PVC market conditions may not be too low. Due to the fact that some high-end products in PVC post-processing products must be produced using ethylene-based PVC products in order to meet the quality requirements of the market, this is also the main reason that the price of ethylene-based PVC products has been higher than that of calcium carbide process PVC for a long time.