PVC products can be divided into soft products and hard products according to their hardness, and the hard products are mostly used in real estate and infrastructure industries. In 2021, profiles, doors and Windows accounted for 20% of the total demand, pipes and fittings reached 32%, sheets and other profiles accounted for 5.5%, floor leather, wallpaper, etc. accounted for 7.5%. From the above proportion, it can be seen that the prosperity of the real estate industry is closely related to the PVC industry.
1.PVC Profile
In 2022, the construction of domestic profile enterprises is generally low, and from the perspective of tracking enterprise feedback, the inventory is split phenomenon, raw material inventory is low, and product inventory is high. The reasons are as follows: one is replaced by broken bridge aluminum doors and Windows; Second, there are thermal insulation performance requirements for regional bidding; The third is weakening overseas demand.
2.PVC pipe
So far, the overall construction of pipe enterprises is still not high. The construction of large factory in South China is about 5-6 percent, and the construction of small factory is about 40 percent. In East China and North China, the number of pipe enterprises is below 50%; In Central China’s Hunan Province, where power cuts have not been lifted, construction is now running at around 40%. In Hubei Province, where power cuts have been lifted this weekend, construction has risen slightly to 4-5 percent. On the whole, due to the weak orders in the off-season of downstream demand, the construction has not recovered to the expected level, and after the high PVC powder last year, part of the demand side has been replaced with PE pipe at the design source, which is also one of the reasons for the weak current demand. In the later period, with the drop in temperature and guaranteed delivery in some areas in the third quarter, demand is expected to recover, but the overall volume may be weakened by the downward pressure of the global economy.
3.PVC floor
From January to July 2022, the export of PVC floor products totaled 3.2685 million tons, a cumulative increase of 4.67% year-on-year. Although of course the total export of PVC floor products is still higher than the same period last year, but from a monthly point of view, in July 2022 domestic PVC floor materials export 499,200 tons, a month-on-month decrease of 3.24%, which placed high hopes on the export of floor products to give pressure. According to the feedback from the tracking sample enterprises of Longzhong Information, the domestic demand of floor products enterprises has decreased by 3-6 percent, while the phenomenon of cancellation and postponement of foreign orders has occurred since June, and the order has decreased by 2-4 percent. From the perspective of foreign negotiations, Vietnam and other places also have competition with domestic enterprises. Domestic enterprises mostly rely on high-end technology and inherent customers to stabilize overseas markets, among which the core technology of domestic medium and large enterprises has become the mainstay of their competition.
To sum up, from “guaranteeing the delivery of buildings” to asymmetric interest rate cuts, domestic real estate underpayment performance is obvious, but compared with the reduced interest, consumers are more concerned about the supply side of the credibility of housing enterprises and market vitality. Under the background of urbanization and aging, real estate enterprises are still under heavy pressure to deleverage. Relatively derived to PVC products there is a heavy pressure of demand recovery, involving the elimination of PVC hard products, merger phenomenon or will continue. As a raw material PVC industry is facing domestic and foreign troubles
Post time: Aug-29-2022