There are not many recent maintenance plans for PVC manufacturers, but some of them are still affected by power shortages or Calcium Carbide supply. The starting load is still low; the downstream has not yet completely got rid of the seasonal off-season. At present, downstream terminal enterprises just need no significant increase in demand. At present, the spot inventory in the market is still hovering at a low level. In addition, the export arbitrage window has been opened. It is expected that the overall supply from August to September will hardly see obvious easing.
It is reported that in the early stage, the installations of Shin-Etsu and West Lake in the United States experienced abnormal production due to lightning strikes, and the volume of exports to Asia decreased. In addition, Formosa Plastics arranged a total of 10 plant inspections in the third quarter. It is expected that the overall PVC market supply in the short term will not be significantly loose. At the beginning of this month, my country's PVC export arbitrage window began to gradually open. Some domestic PVC manufacturers have increased their export orders, and most of them will be delivered from August to October. The increase in export volume may keep domestic spot sources relatively tight for a long time.
PVC fundamentals are expected to be relatively strong from August to September, and prices may fluctuate at high levels
In terms of supply, although there are not many PVC companies that plan to overhaul in the future, the production capacity involved is relatively large. In addition, the insufficient supply of calcium carbide and the limited production of their own installations may still limit the subsequent increase in the start-up load of PVC manufacturers. PVC spot inventories are still hovering at a low level recently. Spots in some regions are relatively tight. The accumulated inventory from July to August is not as expected. As downstream demand is expected to increase, it is expected that PVC spot inventories will continue to remain at a low level. The overall supply side is difficult to be obvious. Loose.
In terms of demand, the demand from large domestic PVC downstream terminal manufacturers is relatively stable, and the seasonal off-season impact has not been completely eliminated. Some downstream terminal enterprises have difficulty in purchasing intentions due to long-term high raw material prices, and some small enterprises temporarily suspend operations due to cost pressures. Under the circumstances, most terminal companies still maintain the strategy of bargain hunting, cautiously just need to replenish. But what needs attention is that if the price of PVC drops significantly, the purchase intention of downstream terminal enterprises may increase. In addition, there are still new upstream export orders this week, and whether the export window continues to open still needs to be paid attention to.
In summary, the domestic PVC market is expected to have relatively strong fundamentals from August to September, and the spot price in the short-term market may remain high and fluctuate.
We have done chemical products for over 30years. Our main products include PVC Resin, CPE, TIO2,PE WAX, Paraffin Wax, Stabilizer ETC.
