PVC: Market confidence boosts demand and gradually improves

In 2021, the market price of polyvinyl chloride (PVC) will first rise and then fall

Industry insiders believe that based on factors such as the continuous increase in supply, the weak domestic demand in the first half of the year and the improvement in the second half of the year, it is expected that the price of PVC in 2022 may first decline and then rise

Calcium carbide amplitude narrows

In 2021, the "double control" of energy consumption will lead to the contraction of raw material calcium carbide supply and the price hike, which will bring strong cost support to the PVC market

Zhang Zhongying, a calcium carbide analyst at Longzhong Information, said that under the background of "carbon peaking and carbon neutrality" in 2022, the production capacity of calcium carbide as a high-energy consumption product is bound to be constrained for a long time

"In the short term, the supply of calcium carbide will still be limited to a certain extent, and the support of production costs for PVC is still very strong

Production growth is not high

Domestic PVC supply mainly comes from domestic production and foreign imports

"In 2022, the 'dual control' of energy consumption is likely to be weaker than in 2021, so it is expected that the supply of calcium carbide will be higher than that in 2021, and the operating rate of the PVC industry may increase

　　According to Li Min, in 2022, PVC plans to add 2.

　　Demand is gradually improving

　　60% of the domestic PVC is used in the real estate field, and 40% of the demand comes from the consumer side

　　"As far as new housing starts, it is expected to continue to show negative growth in 2022, mainly due to the negative growth of land acquisition area and limited land for real estate development; and the Evergrande incident has also dampened consumers' confidence in buying off-plan houses.

　　From the perspective of PVC consumption, the total retail sales showed a low growth rate