1) On February 24, 2022, the Russia-Ukraine conflict officially began.
Push up energy costs, the price of crude oil, once made CFR Northeast Asia ethylene price rose to more than $1300 / ton, with the downstream derivative demand weak, ethylene price quickly fell, making vinyl as raw material PVC enterprises cost reduction.
2) On June 12, 2022, Tianjin Bohua Chemical Development Co., LTD. Succeeded in the first trial run of the 1.8 million tons/year methanol to olefin plant, successfully producing qualified ethylene and propylene products.
The completion and operation of the MTO device will provide sufficient raw materials for the development of downstream devices in Bohai.
3) At the meeting of the Political Bureau of the CPC Central Committee on July 28, 2022, the tone was set to stabilize the real estate market, adhere to the position that housing is for living in, not speculation, and actively support more vigorous efforts to promote the work of “ensuring the delivery of housing and stabilizing people’s livelihood”.
The consumption of PVC products is 50% concentrated in the real estate consumption field, such as the drainage pipe, pipe, pipe fittings, profiles, sheet and profile of home decoration, paving and interior decoration, urban infrastructure for pipe, pipe fittings demand also occupies a certain proportion.
4) On August 22, 2022, the central bank cut interest rates again. The People’s Bank of China authorized the National Interbank Offered Center to publish the latest quoted interest rate (LPR) in the loan market.
The lower mortgage interest rate means that the purchase cost of home buyers will be further reduced, and the further release of housing demand will help to improve the activity of the real estate market and promote the demand for related building materials products.
5) As of September 1, 2022, in order to strictly implement the requirements of the National Development and Reform Commission to clean up and cancel the unreasonable preferential electricity price policy.
After the cancellation of the preferential price, the preferential price of inverted ladder transmission and distribution will be cancelled. The cancellation of this preferential price has no impact on PVC enterprises in Inner Mongolia temporarily. Because calcium carbide and PVC enterprises do not belong to strategic emerging industries and belong to Mengxi power Grid, the cancellation of the preferential price has not caused the increase of enterprise electricity consumption.
6) Effective from October 1, 2022, the People’s Bank of China decided to lower the interest rate of the provident fund loan for the first individual housing by 0.15 percentage points, and adjust the interest rate of the loan for less than five years (including five years) and more than five years to 2.6% and 3.1%, respectively.
The main purpose of the adjustment of the policy is still to meet the rigid housing demand, reduce the financial cost of home buyers.
Post time: Jan-06-2023