The peak season is approaching, the PVC market may welcome a reversal of supply and demand

Although the peak season is approaching, under the influence of the situation in Russia and Ukraine, the prices of international crude oil and related chemicals are easy to rise and hard to fall, but some people in the PVC (polyvinyl chloride) industry are happy and some are sad.

Since the fourth quarter of last year, the PVC market as a whole has shown a situation of oversupply, and product prices have fallen significantly. With the gradual recovery of downstream enterprises and the increase in export orders in March, the demand side is expected to strengthen. At the same time, since the supply side usually conducts centralized maintenance of equipment in the second quarter, the PVC industry is expected to usher in an inflection point.

As a general-purpose plastic with the largest output in the world, PVC is mainly used downstream in the fields of pipes, profiles, floor coverings, etc., which are closely related to the infrastructure and real estate industries.

Affected by weak demand, the PVC market has risen first and then declined since February. At present, the fundamentals of the PVC spot are still weak, and the overall supply is still slightly exceeding the demand. With the gradual increase in the start of downstream products enterprises in March, the enthusiasm for purchasing PVC will increase, and the fundamentals of the PVC market are expected to be significantly improved.

In addition, the PVC industry has begun to improve in terms of exports, and the export orders of domestic PVC enterprises have increased significantly. The reporter learned that under the influence of international crude oil prices, the cost of overseas PVC enterprises has soared, coupled with extreme weather in some areas, the operating rate of enterprises is seriously insufficient.

With the resumption of work of downstream enterprises, the demand for PVC will gradually increase. In addition, affected by the rise in international crude oil prices, it will be beneficial to the price of PVC. In the short term, it is optimistic that the price of PVC will rebound.

However, as the price of PVC rises, the cost of our wire and cable companies will rise, which will push up the price of power cords.


Post time: Mar-02-2022