[Introduction] : With the arrival of the traditional demand off-season, the PVC market is weak, the overall construction of PVC enterprises in Shandong is relatively low, the construction of ethylene enterprises is relatively stable, but other external calcium carbide enterprises, under the cost pressure, some are in the long-term parking state, the other overall construction is maintained at a low level.
At present, Dongyue and Yanhua in Shandong region are in shutdown, Lutai and Dezhou are working on 4-50%, and only Shandong Xinfa is working at full capacity. In September, 200,000 tons of Qingdao Bay was put into production. Recently, the new device of Shandong Xinfa is under commissioning and the discharge is imminent. With new capacity supply, Shandong supply performance is relatively loose.
Affected by light PVC demand, the PVC factory inventory in Shandong continues to be high, according to Longhong data statistics, up to now, the factory inventory in Shandong increased by 217.81% compared with last year, due to the recent impact of public health events, the downstream construction in Shandong is low, mainly for PVC maintenance just need to purchase, in the short term, the pressure of the PVC factory warehouse in Shandong is not reduced.
In terms of pre-sale orders, due to the slowdown of local shipments due to the impact of the general railway strike in the United States, the supply of PVC exported to India was delayed, and Indian customers turned to the Chinese market to make up for part of the vacancy. Therefore, the export orders of Qingdao Bay and Shandong Xinfa increased significantly compared with the previous period, driving the increase of pre-sale volume, but the domestic pre-sale situation is still relatively flat.
Overall, Shandong is still in the pattern of oversupply, downstream procurement is more cautious, continue to maintain the main demand. In the short term, the PVC market in Shandong continues to shake.
Post time: Dec-06-2022