Recently, many sub-industries and enterprises have reflected that the price of PVC resin has increased abnormally from about 6000 RMB/ton to nearly 9000 RMB / ton. It has a big impact on our PVC extrusion industry since H.D.Plastics is mainly focusing on producing PVC rigid profile, PVC co-extrusion parts, PVC U channel, PVC angle, and so on.
PVC Market Changes
It is reported that in 2019 PVC extruded pipes, frame doors and window profiles, foam extrusion products, artificial synthetic leather, plastic shoes, and other sub-industries consume more than 10 million tons of PVC resin. In 2019 general PVC resin prices run between 6,000-7,500RMB/ ton.
Due to the impact of the epidemic, PVC resin prices reached a historical lowest point of 5,000 RMB/ ton at the end of March 2020. The related plastic industry was also greatly affected. most PVC plastic products demand fell. After a steady rise in market demand in the latter month, the price of PVC resin quickly rose to 7,000 RMB/ton in early October. PVC resin ex-factory price has exceeded 8,500 RMB/ton in early December. some of the factory delivery prices reach more than 9,000 RMB/ton. On December 11, some sheet enterprises purchase PVC at 9,150 RMB/ton. A number of PVC raw material companies stopped selling and warehouse stocks in individual areas were exhausted. Some enterprises are gonging to pre-sell one to two weeks’ supply and had to wait in line for delivery.
PVC angle profile extrusion
The abnormal rise in PVC resin brings a great impact to the PVC angle profile extrusion industry. It is understood that the overall production of PVC downstream products did not increase. The price of extruded PVC products is also relatively stable. But the raw materials rose significantly. It is difficult for the manufacturer to accept this situation. Some enterprises have suspended the purchase of PVC raw materials and the processing of PVC extruded products. Some enterprises can only make up the initial profits to the loss for the sake of market continuity, and try to control the production and sales of PVC products. Some large PVC pipe manufacturers reflect that the current PVC resin and PE resin are selling at the same price, or even slightly higher, which will lead to weakened competitiveness of the PVC pipe market. Some manufacturers are willing to recommend the sale of PE pipe, Which in the long run will be detrimental to the PVC products market.
There are also rigid PVC profile products factories that reflect that the products are facing many unfavorable factors, such as the high tariffs for exports to North America with 25%-30.8% tariffs. Shipping costs rose 2-3 times compared with those previous years. the appreciation of the RMB and others.Although the price of PVC resin in Europe and the United States and other developed regions at 6400 RMB / ton (800 euros/ton), since China has implemented anti-dumping of PVC resin on the international market, foreign PVC resin cannot enter the country. Domestic PVC raw materials fluctuate significantly, leading to a snowballing of product exports.
In 2020, against the backdrop of crude oil prices decrease and a significant drop in the prices of polyolefin raw materials, PVC prices have increased significantly against the trend with severe supply shortage, and in some places can only be bought at high prices with cash. Some PVC plastic product factories are worried that the significant price increase will have a major impact on the development of the industry, making it impossible to survive in this industry. It will ultimately do harm to PVC raw material companies. The industry is called for keeping PVC prices stable and reasonable and working together to maintain a good market and ensure healthy and sustainable development of the industry.
For the current stage of price increases, the relevant associations and department understand the current price fluctuations in PVC resin is due to the market changes. But there are also influencing factors with the pull of the upstream price of calcium carbide and the transportation cost. There are also relevant analysis, PVC resin prices against the trend of significant growth is an unreasonable phenomenon, there is a short-term panic factor, there will soon be a return to normal trends.
So in this situation, our PVC extrusion cost is relatively increased due to the whole raw material market.
short-term panic factor, there will soon be a return to normal trends.
Dongguan H.D. Plastic Products is specializing in the production of plastic extrusion of plastic profiles and tubings. the main products are PVC cold extrusion and other ABS, PP, PE, PC, PMMA, etc. plastic extrusion profiles, pipes and bars, PC lampshades, wire channels, PVC soft rubber strips, two-color co-extrusion, extrusion dies, etc..