Industry information: PVC paste resin market is difficult to break through

The export market of PVC paste resin has not improved obviously, and the demand is flat. June is the traditional off-season, and various news are negative for the domestic PVC paste resin market.

From May to June, the PVC paste resin market is still under pressure. The bottom is supported by calcium carbide and VCM costs, and it is difficult to boost prices in the short term.

In May 2023, there will be fewer maintenance companies, and the companies will be in normal production. Individual enterprises are under too much inventory pressure, and Northwest enterprises currently have no inventory as they produce and consume. But at this stage, the price continues to drop. The low-end price of each brand is 6,800-7,300 yuan/ton, and the high-end price is 7,400-7,700 yuan/ton.
 

The industry is at a high level in the start-up stage, and the output of PVC paste resin is relatively high

Weekly Capacity Utilization Rate of PVC Paste Resin Enterprises in 2022-2023

Since the beginning of 2023, domestic PVC paste resin enterprises have significantly higher weekly starts, mainly due to the fact that PVC paste resin enterprises have fewer maintenance companies. According to the start-up statistics last week on May 4th, the start-up rate of PVC paste resin enterprises decreased by 2% month-on-month to 54.96%, an increase from the start-up rate at the end of last year.
 

PVC paste resin price rebound is limited

The bullish factors brought about by the spring inspection were released in the week of April 17-21, pre-sales increased and inventories decreased, which stimulated the bullish sentiment in the market.

However, when the price climbed to around 6,200 yuan/ton for East China Type 5 material, the market once again worried about demand. This week, the PVC market price fell back to around 6,000 yuan/ton again. The bullish sentiment released by the maintenance disappeared, and the market paid more attention to the current situation of insufficient follow-up on the demand side.
 

There are few maintenance companies, and the upstream operation is stable

Usually, the domestic PVC paste resin industry will usher in the first step of maintenance season from April to May. Looking at this year, large-scale production enterprises have not joined the maintenance queue, and there are relatively few maintenance enterprises in the second quarter. The output of PVC paste resin enterprises has rebounded, and the pressure on the industry's accumulated inventory has increased.
 

To sum up, the maintenance of domestic PVC paste resin has decreased recently, and large enterprises have no maintenance plan in the near future, so it is difficult to drive the price out of the range.
 

It is understood that the export market of PVC paste resin has not improved significantly, and the demand is flat. June is the traditional off-season, and various news are negative for the domestic PVC paste resin market. From May to June, the PVC paste resin market is still under pressure, but the bottom is supported by calcium carbide and VCM costs, and it is difficult to boost prices in the short term.
 

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