PVC: favorable and dominant
Recently, the PVC market that just got out of a rally has dropped slightly. In September 4th, the market reference price was 6995 yuan, a slight decrease of 0.18% compared with September 1st.
In the medium to long term, raw material calcium carbide market is rising and cost support is strong. Downstream also entered the demand season, the PVC market is expected to be strong. Liaoning PVC dealers Lu Qiang and other industry analysts believe that.
The rising price of calcium carbide is the driving force for the rise of the PVC market.
According to Lu Qiang, the PVC market rose by 2.45% in August, mainly due to stricter environmental supervision in the main producing areas of calcium carbide, inadequate market supply and sharp price increases. In August, the price of calcium carbide in Northwest China increased by 50~100 yuan.
In the future, environmental regulation will be more and more stringent, and the shortage of calcium carbide will become more and more serious. Lu Qiang said that in late September, the 60th anniversary of the founding of Ningxia Hui Autonomous Region will be held, or affect the supply of calcium carbide. According to the data of 2017, the annual production capacity of calcium carbide in Ningxia is 4.93 million tons, accounting for 10% to 13% of the total national production capacity. The main supply areas are South China, Shaanxi and Shanxi. With the launch of various celebrations, calcium carbide transport will be controlled. And the local safety inspection will be launched in the near future, which will have a certain impact on the production of calcium carbide, so that the market supply is expected to reduce.