Shandong area PVC market analysis

Guide: The Mid-Autumn Festival holiday back, Shandong PVC market is difficult to change the weak trend, although the market has risen to show, but there is no price, the downstream of the high price of goods is more resistant, wait-and see, the main reason is that the current downstream products enterprises still maintain low, limited demand, continue to just need to purchase.  At present Shandong market continues to maintain weak consolidation pattern.

Construction: There are 9 PVC production enterprises in Shandong, and the operating rate of PVC enterprises in Shandong is 83.16%.  However, comprehensive overhaul of the 500,000 tons PVC unit in Xinfa Phase II began on September 15, which will last about 15 days.  Late Yantai Wanhua 400 thousand tons PVC equipment parking maintenance, for a month or so.  In addition, 200,000 tons of new capacity in Qingdao Bay is currently in trial run.  Overall, the Shandong area construction situation is good.

Sales: At present, the enterprise shipping pressure is still, although the current season, but the season is not prosperous, the local downstream improvement is limited, the demand for PVC is difficult to volume.  In terms of export market, the price advantage of domestic goods is not big at present, coupled with the impact of foreign goods, it is difficult to sign export orders.  At present Shandong area PVC enterprise presale performance is general.

Inventory: The inventory of Shandong PVC enterprises continued to increase month-on-month this week, mainly affected by the sluggish demand.  That is up 155.38 per cent from a year earlier, when strong export markets coupled with strong domestic demand kept inventories low.

Downstream aspects:

The construction of downstream PVC products enterprises has been restored, mainly to resume production after the holiday, and enterprises mostly maintain medium load.  Hard products are still weak, soft products industry started stable, plate enterprises in general orders, regional uneven construction, export is difficult to increase.  According to the research of Longzhong Information, in terms of raw materials, product enterprises need more replenishment to maintain steel, only some of them have moderate low price replenishment, and the inventory cycle ranges from 7-20 days.  Product inventory: maintain a medium to high position, overseas market development pressure.  Follow-up orders: Most of them maintain the established status, but there are partial expectations.

Overall, Shandong PVC market supply and demand continue to game, continue to weak shock operation.  On the supply side, the late planned maintenance is reduced, and the supply performance is loose;  On the demand side, it is difficult to start and improve the downstream construction, the product orders are limited, the demand for PVC is difficult to increase, the export market competition pressure is increasing, and there is no obvious price advantage, so it is difficult to sign orders.  So in the short term PVC market continues to maintain a weak pattern.


Post time: Sep-19-2022