PVC bottom up the market outlook can be supported on-PVC, futures, rose - the plastics industry

Published: 06th April 2011
Views: N/A

HC plastic mesh News: Over the past three months, China has maintained a PVC futures market traded sideways oscillation pattern, the current contract in 7600 main 1009? 8100 yuan / ton in the price range of oscillation operation. Recently, the euro area and domestic sovereign debt crisis worsened the double negative effect of real estate under the New Deal, the major domestic commodity prices are showing a more substantial decline, PVC futures fell hard to avoid such systemic risks. However, the trend from the disk of PVC look, behave more defensive, following the author from the PVC industry chain downstream of the pattern and shape futures techniques to analyze the two aspects of the price movements of late.

PVC production costs significantly PVC production process, including both French and calcium carbide and ethylene, the domestic production of calcium carbide production of PVC accounts for 70% of PVC production. In the current oil price levels, the ethylene production of PVC was significantly higher than the cost of calcium carbide, in general use on PVC can not compete with calcium carbide, PVC prices remained the leading country is the cost of calcium carbide, calcium carbide and the cost price by International environmental factors are relatively small, and this is the trend of domestic PVC prices low by international crude oil prices affect the main reason.

Production of PVC by calcium carbide and coal chemical combination of chlor-alkali chemical industry, the main raw material is calcium carbide and chlorine. Since April of this year, China Qinhuangdao coal stocks continued to decline, as at the end of April to the latest inventory data, current inventory is 5.1 million tons of coal in Qinhuangdao, less than two weeks ago, nearly 200 million tons, which indicates that the coal supply will gradually become tension, the price at May will show a rising trend. With the approach of summer peak demand will further stimulate the coal, so as to promote coal prices. Coal prices will inevitably bring about a major producer of raw materials PVC price of calcium carbide, and then transmitted to the PVC market often processed chlorine mainly by the salt, salt, Shandong mid-market prices in April remained at 195 yuan / ton, price increase from late April At present crude salt prices have risen to 230 yuan / ton, the price of salt rose to 18%, salt price increase will also promote PVC production costs. On the other hand, calcium carbide production of PVC is a high energy-consuming method, water, electricity prices will also increase production cost of PVC. Therefore, all kinds of raw materials and rising energy costs will drive the cost of PVC production increase, which would constitute a strong price trend PVC support.

PVC supply and demand remained relatively stable

The agency statistics show that China's PVC output this year there has been a more substantial increase, but imports a substantial reduction of the total supply of PVC, and no significant increase. With international crude oil prices, import prices of PVC in the lack of comparative advantage, which will further inhibit the PVC imports. In the downstream demand, the demand for real estate industry on PVC accounts for 60% of total demand for PVC, which makes the real estate industry boom is directly determines the demand for PVC status. Since March of this year, the domestic housing construction area and the new construction area are to maintain strong growth. It is noteworthy that the government's regulatory policy is the core of the property market against speculative buyers, while still encouraging start to increase the supply of property, therefore, the state's regulatory policies on house prices will not affect the actual demand for PVC.

In addition, on May 5, said Premier Wen Jiabao, to use the hard-line policy of the elimination of backward production capacity, and strong compression of high energy consumption and high emissions of power companies, energy consumption gauge on the product unit price charged punitive. Therefore, we expect future production process behind the production of small and medium enterprises will face PVC production difficulties, and large enterprises because of its economies of scale and a mature industry chain, will maintain competitive advantage and control the pricing power of PVC, which will be on PVC support price formation.

about author:

We are high quality suppliers, our products such as Modular Wall Systems , Modular Wall Systems for oversee buyer. To know more, please visits Roofing Solutions.

Report this article Ask About This Article

More to Explore