Introduction
Affected by the inventory pressure and the continuous high price of raw calcium carbide, the operating load of some domestic PVC Paste Resin enterprises was adjusted downward in early July. By the end of July, the average operating level of domestic PVC paste Resin industry had reached a five-year low.
As of July 29, the monthly average operating load of domestic PVC paste enterprises was 45.48%, 25.7 percentage points lower than the average operating load in June and 26.24 percentage points lower than the same period last year, which is the lowest monthly average operating load in recent five years, and the lowest operating load per day in the month is even less than 25%.
The main factors leading to the sharp decline of operating load in the month are the excessive inventory pressure of some enterprises at the beginning of the month and the high cost of raw calcium carbide. Due to the weak domestic demand from May to June and the high operating load of enterprises, the market supply pressure is large and the inventory of some enterprises is high. However, the simple price reduction can not alleviate the inventory pressure of enterprises. At the beginning of July, some paste resin enterprises reduced the operating load to ease the inventory pressure. In mid July, with the tight supply of raw calcium carbide affected by the policy, the price of calcium carbide continued to soar, resulting in an obvious increase in the cost of paste resin, a decline in the gross profit of paste resin and even "from positive to negative". In mid July, some PVC enterprises further reduced the load and even temporarily shut down some enterprises, The average operating load of domestic PVC paste enterprises decreased significantly.
As some buyers began to enter the market in mid July, the market demand for goods preparation increased. After shipment in the third and fourth weeks of July, the inventory pressure of some paste resin enterprises was relieved, and even the supply of some brands was tight, and the paste resin price stopped falling and rebounded. However, due to the obvious losses of some external calcium carbide mining enterprises, the starting load had not increased by the end of July. At present, it has been heard that Shenyang chemical, Shandong Langhui, Tangshan Sanyou and other enterprises have plans to increase the load in August, but they can only reach the full load start-up plan temporarily, and some maintenance enterprises will resume production in August. Therefore, the average operating load of domestic PVC paste enterprises will increase in early August, but the increase range is limited.
To sum up, the price of calcium carbide fell from a high level in some time periods in August, but the decline range is limited, and the overall price is still at a high level, so the cost support of raw calcium carbide still exists; Even if the operating load of paste resin enterprises increases as a whole, most paste resin enterprises have no worries about inventory, so there will be no oversupply for the time being; The start-up of some terminals is weak, but individual buyers still have the demand for goods preparation. It is comprehensively expected that the domestic PVC paste price may still rise in the first half of August, but the increase will not be too large.
