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From the beginning of 2017 to the present, plastic prices have fluctuated frequently, and since late March this year, the price of plastic raw materials has risen
across the board.
Taking PVC, that is, polyvinyl chloride, which is mainly used to make construction pipes, as an example, the price rose from about 6200 yuan / ton to about 7100 yuan / ton in early June
.
Although the current price has retraced, it is still at a high level, so why is the price of PVC rising?
Raw material costs increased PVC rose more than 14% in two months
Raw material costs increased PVC rose more than 14% in two monthsIn the warehouse of a PVC raw material manufacturer in Ordos, Inner Mongolia, the reporter saw that there were not many stacked products, only occupying about a quarter of the space, and the person in charge told the reporter that this was nearly half
less than the normal inventory.
There are only 5,000 tons, and these goods have actually been sold
.
At present, the ex-factory price of PVC products is basically about 6,700 yuan per ton, which is six or seven hundred yuan
per ton compared with late March.
Combined with freight, the market price is about
6900 yuan.
In mid-June, the market price reached 7,100 yuan
.
The rise in PVC prices is directly related
to the increase in raw material costs.
In addition, in the past two years, the application field of PVC has expanded from traditional pipes and profiles to floors and walls, and the demand has increased
.
With the increasingly strict environmental protection policies, some backward production capacity is gradually eliminated, and the supply is decreasing
.
Backward production capacity accelerates the elimination of downstream enterprises transformation and upgrading
Backward production capacity accelerates the elimination of downstream enterprises transformation and upgradingIn the past two years, the optimization of production capacity structure brought about by environmental protection policies has made good profits for upstream production enterprises that were originally in a
loss-making state.
The recent rise in the price of PVC raw materials and the accelerated elimination of backward production capacity have also made downstream production enterprises begin to seek a way
to transform and upgrade.
In an enterprise producing PVC pipe fittings in Jiaxing, Zhejiang Province, the person in charge is working with the staff to make a production and sales plan
for the day.
The person in charge said that in the past two months, the sales of enterprises have been particularly good
.
Although sales have increased, the cost of raw materials has risen by nearly six or seven hundred yuan per ton this year, while the price of products has only increased by two or three hundred yuan, which is very stressful for enterprises
.
In order to improve the added value of products, his enterprise is transforming and upgrading to improve product quality
.
Industry insiders said that under the pressure of rising costs and environmental protection policies, some small PVC pipe and profile manufacturers have shut down
.
At present, the plastic processing industry is developing
in the direction of medium and high-end and high quality.
Traders reduce inventories and increase futures hedging
Traders reduce inventories and increase futures hedgingFor trading enterprises, the recent rise and fall of plastic prices has increased the risk of relying on the spot market to earn the difference
.
In order to avoid risks, trading companies are also actively seeking better ways to make profits through financial instruments
.
In a warehouse in Hangzhou, Zhejiang Province, staff told reporters that in the past month, the prices of plastic raw materials such as polyvinyl chloride, polypropylene, and polyethylene have fluctuated first and then retreated, which makes traders dare not store too many raw materials, and the inventory has dropped significantly
.
Xu Jingen, the head of a trading company, now often checks the price changes of plastic-related futures products, because the current trade pricing is basically a reference to futures prices
.
They have a total inventory of about 200,000 tons, and they used to do about 50% of their hedging volume on futures, but they have been increasing their hedging volume due to frequent price fluctuations recently
.
In recent years, the price of plastic raw materials fluctuates more obviously, as the market price becomes more and more transparent, the traditional trade model of simply relying on the spot market to earn the difference, the risk increases, and a large number of enterprises lock in profits
through risk hedging in the futures market.
In 2017, 7,953 industrial customers participated in plastic futures on the Dalian Commodity Exchange, a record high
.
The trading volume and position of industrial customers accounted for 23.
6% and 47.
7%, respectively, an increase of 2.
2% and 0.
7%
year-on-year.
