Sudden Accidents Superimposed Tight Supply And Demand PVC Ushered In A New Round Of Price Rises

Affected by the "March 21" special major explosion accident, the PVC market, which had been quiet, began to rise in late march. On April 24, the explosion accident in the PVC workshop of dongxing chemical co., ltd. of Inner Mongolia yidong group again affected the PVC market. On April 26, PVC market reference price 6,855 yuan, up 8.81% from the beginning of march. The personage inside course of study thinks, sudden accident overlay the market that supply and demand concerns tension to anticipate, PVC market will greet new round to rise in price tide.


Fry go up atmosphere is full-bodied

According to zhang songmao, after the March 21 explosion, tianjin, shaanxi, henan, shandong and other places have deployed work to screen out potential safety hazards. Affected by this, PVC market speculation strong atmosphere, out of a wave of rising prices. In the market just to calm down, dongxing chemical PVC workshop and explosion accident, again caused market shock.


Zhang songmao believes that in the short term PVC market will be boosted to a certain extent, but the late to see policy, safety inspection and other aspects of the situation. If the security inspection further upgrade and increase, do not rule out PVC supply contraction, to bring support to the market.


Centralized overhaul of equipment

Generally speaking, the annual may is the peak of PVC equipment maintenance, supply of goods is expected to reduce, PVC market price is likely to rise.

"Several safety accidents have occurred in chemical enterprises this year, and the competent authorities will step up safety inspections in the coming days. Some of the devices may be extended for maintenance, leading to tight supply expectations." Zhang songmao thinks.


Peak demand season is upon us

The 2nd quarter is the demand busy season of PVC tradition, busy season advent also is hopeful drive market go up.

According to zhang songmao introduction, because the first quarter of the north climate is cold, and during the Spring Festival transportation inconvenience, leading to the north of the plastic processing enterprises operating rate is generally low, demand for PVC is also greatly reduced, depressed the market price, so every year in the first quarter of PVC market trend is general. From the beginning of the second quarter, as the temperature rises, the downstream enterprises' operating rate gradually increases, and PVC demand also gradually increases, the market price starts to rise in April and may, and the rise continues to August and September, the market presents a pattern of higher volatility, and tends to reach the peak within the year.


In addition, the downstream profile and pipe industry of PVC is closely related to the real estate industry, and the data of new construction area of real estate will affect the market demand of PVC. Since April last year, housing starts have stabilized and picked up year on year. As of December last year, housing starts rose 17.2% year on year, reaching a new high in nearly 2 1/2 years. Generally speaking, the demand of PVC market lags behind the housing starts for 5~10 months, therefore, the market demand of the profile and pipe industry will begin to appear in the second quarter of this year, which is good for promoting the PVC market.


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