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    Home > Chemicals Industry > Rubber Plastic News > EPS: Cost reduction lucrative

    EPS: Cost reduction lucrative

    • Last Update: 2022-08-25
    • Source: Internet
    • Author: User
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    Although it is incomparable with the price of "Golden Nine Silver Ten" in previous years, which was tens of thousands of yuan (ton price, the same below), there are still many bright spots in the polystyrene (EPS) market this year.
    %


    .


    "From the perspective of the market outlook, benefiting from a series of favorable factors such as the tight supply and demand pattern and the recovery of the prosperity of small enterprises, the EPS market will maintain a strong and volatile pattern, and production enterprises will have a better life this year than in previous years


    .


    Profits remain high

    Profits remain high

    Since September, although the EPS market price has been running at a low level of 8,000 yuan, due to the sharp decline in the price of raw material styrene, EPS production enterprises have still made considerable profits this year


    .


    According to the production staff of Jihua North polystyrene plant, from the data at the end of September, the domestic EPS production cost is about 5,380 yuan, and the profit reaches 1,615 yuan


    .


    "Affected by environmental protection, security inspection and other policies, some EPS manufacturers have permanently stopped production, some have withdrawn from the production sequence, and some may have irregular parking and production restrictions, which has intensified the tight supply situation in the EPS market


    .


    Raw material prices are stable

    Raw material prices are stable

    From the point of view of raw material styrene, the domestic mainstream market generally fluctuated strongly before and after the National Day


    .


    At present, the average load of the domestic styrene industry is about 95%, an increase of about 1.
    7% from the previous period


    .


    Industry insiders generally believe that October is the most abundant month for domestic styrene supply in the fourth quarter, but due to the good orders received by enterprises before the holiday, the short-term and medium-term inventory can be controlled at a relatively low level


    .


    Li Min said that it is difficult to effectively relieve the pressure of styrene from the upstream cost side, and energy, chemical and bulk commodities are still unstable.
    Especially since the end of October, domestic new and expanded capacity units will be put into operation one after another

    .
    On the whole, the styrene market may have an opportunity to move up in a narrow range in the later period, but the increase is limited

    .
    Therefore, in terms of cost, the EPS profit margin will not be greatly eroded

    .

    Strong demand

    Strong demand

    After the epidemic, the stimulus of national policies and the increase of investment in infrastructure are beneficial to the external wall insulation industry; on the other hand, online shopping consumption has increased significantly, orders in the home appliance industry are booming, and the demand for foam packaging has increased significantly
    .
    As a result, the insulation and packaging industries have driven the increase in EPS demand

    .
    It is reported that some foam packaging factory orders have been placed in the end of October or the beginning of November, which has continuously strengthened the role of the raw material EPS market

    .

    Manager Zhu Yushan, who is engaged in the business of home appliance packaging materials, said that this year's home appliance packaging supplies have increased significantly, and the company's business has increased by 15.
    6% over last year, so the purchase of EPS packaging materials has increased significantly

    .
    At present, EPS products on the market are still in short supply

    .

    Relevant data show that global TV shipments hit a record high in the third quarter of this year
    .
    A total of 62.
    05 million units were shipped in the third quarter, an increase of 12.
    9% over the same period last year and an increase of 38.
    8% over the previous quarter

    .
    In addition, in August, the domestic output of household refrigerators was 9.
    085 million units, a year-on-year increase of 28.
    5%

    .
    The rapid recovery of the home appliance industry has strongly driven the development of the packaging industry

    .

    In addition, from January to August, the national real estate development investment was 8.
    8454 trillion yuan, a year-on-year increase of 4.
    6%, and the growth rate was 1.
    2 percentage points higher than that from January to July.
    This also promoted the development of the exterior wall insulation industry, which in turn drove the increase in EPS demand

    .

    According to statistics, the cumulative consumption of EPS in China from January to August was 1,887,300 tons, an increase of 126,300 tons or 7.
    18% over the same period last year

    .

    Zhu Yushan said that after entering October, the peak season of northern panels has come to an end, and the southern foam market is still in peak season.
    It is expected that the domestic EPS market will rise in a narrow range in the short term, and corporate profits will remain high

    .

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