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Casa> Blog> PVC resin is on a downward trend, and the inventory of caustic soda is increasing

PVC resin is on a downward trend, and the inventory of caustic soda is increasing

October 27, 2023

Erdos Pvc Sg5 Jpg

PVC

As the supply of calcium carbide increases, the price of calcium carbide has significantly decreased, shifting profits to PVC resin and easing the restrictions of calcium carbide on PVC powder. In mid to late October, the maintenance volume of PVC production capacity increased, and the operating rate significantly decreased. However, it is expected that the maintenance time will be short, and the operating rate will soon recover.

Insufficient terminal demand, due to the limitation of the total decline in real estate demand and the generally slow construction progress, downstream construction has not returned to the pre holiday level, and there has been another anti seasonal decline. The recent increase in maintenance volume has led to a significant decrease in PVC resin production, but it is expected to last for a short period of time. As demand continues to decline, inventory remains at a high level. The supply of calcium carbide has increased, and the maintenance of PVC production equipment has recently increased, but the duration is relatively short. The operating rate is expected to recover soon, and the profit of PVC powder is still acceptable.

Downstream and terminal substantive demand is insufficient, with strong export demand in the early stage but recent weakness. Downstream construction is still declining, and future recovery is difficult. Inventory remains high. The fundamental plane is in a biased state.

Caustic Soda

The current production capacity loss is at a relatively low level, and the production of caustic soda remains at a high level. From the perspective of future maintenance plans, there will be a certain amount of maintenance from late October to mid November, and it is expected that the construction can still stabilize at a relatively high level.

Aluminum oxide prices remain at a high level, profits have increased, and aluminum oxide production can still be maintained. However, some aluminum oxide enterprises have high inventory of liquid alkali, and their demand for caustic soda is limited, mainly in demand. The downstream performance of other caustic soda is average, and in the case of a decrease in caustic soda prices, it is mainly in demand. The start of caustic soda production remains high, and downstream demand is average. Inventory has once again accumulated significantly, and inventory is at the highest level in the same period.

The spot price of caustic soda has continuously decreased significantly, leading to an increase in supply, but with a decrease in shipments to alumina enterprises. Afterwards, it is expected that as the enthusiasm of alumina enterprises to purchase goods decreases, downstream demand for other caustic soda will flatten, demand will remain weak, and inventory will accumulate. However, in terms of supply, chlor alkali enterprises will have centralized maintenance in late October, and it is expected that the price of caustic soda will gradually flatten.



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