CPE Analysis Of Influencing Factors Behind Small Rise In Off-season

Since late July, some CPE manufacturers in shandong, liaoning and other places have slightly increased their quotations. At present, the CPE market in shandong has negotiated a price of 8600-9600 yuan/ton, and the transaction focus has increased by 50 yuan/ton, or 0.55%, compared with the price on July 23.


Cost and supply and demand are important factors affecting the price of CPE market. CPE special materials recently continued weak stalemate trend, this month the settlement price of domestic Yangtze petrochemical CPE special materials settlement price of 9500 yuan/ton (out of storage), shandong sent the price of 9800 yuan/ton, the same as last month; Since mid-to-late July, the highest level of liquid chlorine in shandong is 625 yuan/ton, and the lowest point is -200 yuan/ton. The difference between high and low levels is 825 yuan/ton. The price of liquid chlorine rises and falls significantly. At the same time, it is currently in the traditional sales season, affected by the recent high temperature and rainy weather, downstream construction load has declined, the demand side is relatively weak, downstream procurement initiative is general, manufacturers shipping flat. Under the background of flat demand and obvious cost decline, shandong CPE market transaction center of gravity instead of tentative rise, what are the influencing factors?


Reduced supply. Shandong, hebei and other places to carry out strict inspection of environmental protection work, at the same time, shandong zibo from July began a 3-month period of summer and autumn industrial enterprises peak production, mainly involving PVC gloves, pharmaceutical, organic chemical, petrochemical. It is understood that around the middle of July, many CPE manufacturers in shandong region reduced production or short-term shutdown, the local market supply has been reduced, the short-term CPE market price increase, some manufacturers slightly increase the price, the focus of market transactions also moved up.


Market hype. Recently, weifang yaxing closure, relocation rumors swirl, some industry insiders on CPE market trend bullish, support price speculation intention is high, CPE market transaction price brings some news to stimulate, manufacturers follow a small test rise. However, zhuo chuang information confirmed to the relevant people in Asia star that the company has not confirmed the relocation plan, and we need to wait for further notice from the relevant local government departments.


Market factors are closely related, supply and speculation sentiment led to the current off-season CPE market trial rise phenomenon. The short-term CPE cost may have no obvious fluctuation, but the impact of this environmental protection inspection may cover the whole july-september period. In the long run, the supply end of the CPE market may be weak, and the demand may be weak and stable, and the short-term CPE market price may still have a tentative rise.


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