The epidemic affected the operating rate and significantly reduced the price of PVC paste resin or welcomed the price rise tide

As a necessary raw material for disposable COVID-19 gloves, PVC paste resin once exceeded 25500 yuan per ton last year. With the epidemic situation, the demand of PVC paste enterprises decreased significantly, but the inventory of PVC resin decreased significantly. As of March 23, the mainstream quotation of PVC paste resin in China is 10900 yuan / ton, which is very close to the production cost. But financial union learned from PVC paste resin related manufacturers that in recent years, with the repeated COVID-19, the PVC paste resin enterprises in Northeast and North China have been affected to varying degrees. The operating rate has dropped significantly, and the enterprises have accelerated their inventory to make it possible for PVC paste resins to rise in the future.

At present, the price of PVC paste resin is not high, which is stable around 11000 yuan. However, due to the repeated epidemic and the increase of downstream demand, the current price should remain stable. If the inventory of production enterprises can be cleared quickly and the new demand brought by the epidemic continues to increase, the price of PVC paste resin may rise in the future. However, the impact of the epidemic is relatively complex and the time period of price rise is uncertain.

According to relevant industry data, the operating rate of PVC paste resin industry this week was 56.09%, more than 25% lower than that of the same period last year. At present, the operating rates of major domestic large-scale production enterprises such as Xinjiang Tianye, Shenyang Chemical and Sanyou chemical are generally not high. Relevant enterprises told the financial associated press that at present, the epidemic control in Northeast and North China is relatively strict, which brings certain difficulties to the raw material input of PVC paste resin enterprises. Relevant enterprises in Northeast and North China have reduced their production compliance, and the most difficult manufacturers have stopped work. In this context, Xinjiang Tianye and Shenyang Chemical have raised their ex factory prices this week.

The epidemic has created demand, but it has also brought difficulties to product sales and transportation. At present, there is no significant upward trend in downstream demand. More importantly, at present, the inventory of relevant production enterprises is relatively high, and de inventory is the most important thing for enterprises. It is believed that only when the inventory decreases and the demand continues to increase, the price of PVC paste resin can rise sharply.

However, at present, the supply of PVC paste resin may continue to decrease. Yangmei chemical and Binzhou Zhenghai have a total capacity of 140000 tons. At present, it has been confirmed that it will be overhauled in April, and the maintenance days are to be determined. At that time, if the destocking of PVC paste resin is completed, the probability of price recovery is very high.