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PVC Raw Material Prices Rose
- Aug 23, 2018 -

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Affected  by the Sino-US trade disputes, coupled with low inventory and cost  support, the latest spot quotations of the five major general-purpose  resins in the Far East are different. PVC, PP and PS are resistant to  decline, PE is heated by supply, and the price is high. The  acceptance of transfer was not high, and the spot price fell by 10 US  dollars per ton; ABS, which had once rebounded, also pulled back to  settle 40 dollars.

Analysts  believe that PVC, PP, EG, and SM are relatively stable due to low  inventory and relatively stable demand. The related production plants  are Formosa Plastics (1301), Huaxia (1305), Taihua (1326), Ronghua  (1704), and South Asia. (1303), Guo Qiao (1312) operating points, became the recommended tracking target.

However,  the price of ethylene remained high. The domestic ethylene contract  price was about US$1,100 per ton, which was lower than the spot price of  US$1,400. The PE spread was severely suppressed and the performance was  weak and backward.

According  to the manufacturer, the PVC market in mainland China has been in the  upward channel due to the overall low level of social inventory, the  expected increase in maintenance equipment, and the high raw material  prices. At  present, the overall operating rate of PVC is 83.33%, while the price  of upstream raw materials is high, the supply of calcium carbide is  still tight, the social stock of PVC is relatively low, and the spot is  tight.

According  to the ICIS-MRC price report, some Russian producers announced that the  price of SPVC for additional delivery began to increase by 1,500 rubles  per ton on August 15, and the price of suspended polyvinyl chloride  (SPVC) supplied to the mainland market rose by 1,000 to 1,500 rubles. There  are also some Russian manufacturers that have announced an increase in  PVC prices of about 2,000 rubles per ton in September.

In  addition, the mainland has more PP maintenance devices in August, and  the social inventory is low. The petrochemical willingness to price has a  strong support for the price. It is expected that the short-term PP  price will still fluctuate within the range.

In  September and October, Asian equipment was overhauled, and ethylene  prices continued to be high-end. However, downstream factories began to  resist high-priced raw materials, and PE market purchase intentions were  weak, resulting in slower shipments. With  the United States taxing China, the US PE offer was mostly cancelled,  and the inflow of US supplies in Southeast Asia has increased recently.