PVC prices are still at historic highs

Power shortage, Inner Mongolia area, Ningxia electrode limit is serious, Ulanqab enterprises have stopped furnaces for three consecutive days, the rest of the enterprises are also running with reduced load, calcium carbide operating rate has dropped to 70%, and prices have risen PVC enterprises rush to buy calcium carbide.

The ex-factory price of calcium carbide is 5300-5400 in the northwest region, and the receiving price in Shandong region is 5600, and the current loss of calcium carbide method enterprises purchased in Shandong region
.
Downstream demand is still tepid, pipe profile enterprises have high finished product inventory, and real estate demand has signs of weakening with the deepening of
regulation.

Social stocks were still declining the week before, with absolute stocks of about 116,000 tons at a low level, 55%
lower than in 2020.
But prices are also significantly higher than in the same period
last year.
The direction of the future market is unknown, supply and demand two weak external prices India rebounded this week, CFR China fell 20 at $1280 / ton affected by Formosa Plastics quotations, CFR Southeast Asia fell 10 at $1290 / ton, CFR India freight and shortage affected by 90 at $1520 / ton
.
External demand is likely to recover, and there is little room for domestic support to fall
.

On the whole, the current PVC price is still at a historical high, but the overall profit level of enterprises with different processes varies greatly, and the overall profit of enterprises with raw material advantages is very considerable, while the overall profit of enterprises without raw material advantages is low, and some face losses
.