The Chinese New Year is approaching, what is the recent trend of the PVC market? Seems to be in a state of shock? Together with the HAODIBAN brand, take a look at the recent situation of the PVC market.
The domestic PVC market continues to fluctuate. With the Spring Festival approaching, the PVC market demand is slowing down, but the supply remains high, and the industry’s inventory is accumulated due to festivals. In addition, the price increase in the Asian market in February is not high, which has a slight negative impact on domestic exports. The market waits and sees The atmosphere is strong.
Recently, the number of downstream PVC holiday enterprises has increased one after another, and some enterprises that are not on holiday are not in a hurry to purchase, and mainly wait and see the market. However, favorable policies for real estate and domestic consumption continued, and the prices of major domestic commodities rose, driving the PVC market. Strong expectations and weak demand continue to compete, and the PVC market continues to fluctuate.
On the supply side, the latest data show that the weekly output of PVC was 428,900 tons , a decrease of 0.02% month-on-month and an increase of 3.62% year-on-year. Among them, the output of ethylene method reached 102,000 tons, an increase of 0.87 month-on-month, and an increase of 44.12% year-on-year; the output of calcium carbide method reached 327,000 tons, a decrease of 0.29% month-on-month, and a year-on-year decrease of 4.73%. At present, the ethylene process starts at a high level, and the ethylene process units such as Qingdao Haiwan, Tianjin Dagu, Hanwha, Formosa Plastics, and Wanhua have started to operate at a high level, resulting in a significant increase in ethylene process.
In the Asian market, driven by the announcement of the pre-sale price in February by major manufacturers and the sell-out on the same day, the price rose. CFR China was at 885 US dollars/ton, Southeast Asia was at 880 US dollars/ton, and CFR India was at 930 US dollars/ton.
Traders are currently bullish on China's long-term demand outlook, which is expected to be accompanied by a resumption of buying after the Lunar New Year. However, some industry insiders said that under the situation of oversupply, the price of PVC in the Asian market is relatively high. Except for India, buyers in other regions are not eager to buy. The international market waits and sees the impact of the adjustment of the epidemic prevention and control policy in mainland China. U.S. raw materials are flooding into Asia as freight rates fall. I heard that there are cheap goods from different countries in China's main ports, the import window is open, and the supply continues to increase.
On the demand side, the current start-up of PVC products companies has dropped significantly, mainly due to holidays. From the perspective of profile companies, individual companies are still continuing to produce in order to rush to order, maintaining the original start-up load. In terms of raw materials for profile companies, the inventory cycle ranges from 12 to 26 days. Some companies have no plans to replenish their inventory due to orders, and they are not very accepting of high raw material prices. In terms of product inventory: the inventory cycle ranges from 15 to 30 days, and some of them are orders to be delivered. The start of work maintains a load of 20-40%, and some of them have lower loads due to holidays. Looking at the industry as a whole, the holiday plan lasts from this weekend to the end of January.
From the perspective of profit, the average cost of calcium carbide PVC production enterprises in the country is currently rising, and the price of PVC is loose at the same time, resulting in a slight loosening of the average profit of calcium carbide method. The average gross profit of ethylene process enterprises rose .
On the whole, the domestic PVC market continues to fluctuate. As the Spring Festival holiday approaches, the PVC market demand slows down, but the supply remains high, and the industry’s inventory accumulates due to festivals. In addition, the price increase in the Asian market in February is not high, which is slightly negative for domestic exports. Affected, the market has a strong wait-and-see atmosphere. The market price of calcium carbide type 5 in East China is expected to remain at around 6,100-6,300 yuan/ton, and the market for ethylene methods is stalemate, with pre-sales being the main source of futures.
As a Chinese flooring manufacturer, HAODIBAN brand has always been adhering to the purpose of providing high-quality flooring for global customers, and the service attitude of answering flooring questions for customers. The professional service team will continue to allow customers all over the world to purchase high-quality PVC flooring products and achieve cooperation. A win-win friendly cooperative relationship.
Inspected Vinyl Floor Delivery to Kuwait | HAODIBAN
Complete DIY Guide for LVP Flooring Repair
HAODIBAN Demonstrates Reliable Delivery Capabilities
New Product Recommendation: Bamboo Charcoal Wall Panels
