Analysis of domestic PVC export market in the first half of 2020
In the first half of the year, the domestic PVC export market was affected by various factors such as domestic and foreign epidemics, upstream and downstream enterprises’ operating rates, raw material costs, logistics and other factors. The overall market was volatile and the performance of PVC exports was poor.
From February to March, affected by seasonal factors, in the early period of the Spring Festival, domestic PVC manufacturers have a higher operating rate and a greater increase in output. After the Spring Festival, affected by the epidemic, it was difficult for downstream manufacturing companies to increase their work resumption rate, and overall market demand was weak. Domestic PVC export prices have been lowered. Due to the backlog of domestic stocks, PVC exports have no obvious advantages compared with domestic prices.
From March to April, under the effective prevention and control of the domestic epidemic, the production of downstream enterprises gradually recovered, but the domestic operating rate was low and unstable, and the market demand performance shrank. Local governments have issued policies to encourage enterprises to resume work and production. In terms of export transportation, sea, rail, and road transportation has gradually returned to normal, and delayed shipments signed in the early stage have also been issued. Foreign demand is normal, and domestic PVC export quotations are mainly discussed. Although market enquiries and export volumes have increased compared with the previous period, actual transactions are still limited.
From April to May, the domestic epidemic prevention and control achieved initial results, and the epidemic was basically effectively controlled. At the same time, the epidemic situation abroad is severe. Relevant companies said that foreign orders are unstable and the international market lacks confidence. As far as domestic PVC export companies are concerned, India and Southeast Asia are the mainstays, while India has taken measures to close the city. The demand in Southeast Asia is not performing well, and domestic PVC exports are facing certain resistance.
From May to June, the international oil price rose sharply, which drove the increase of ethylene quotation, which brought favorable support to the ethylene PVC market. At the same time, downstream plastic processing companies continued to increase their operations, resulting in a decline in inventory, and the domestic PVC spot market continued to rise. The quotations of foreign PVC external disks are running at a low level. As the domestic market returns to normal, the import of PVC from my country has been increased. The enthusiasm of domestic PVC export enterprises has been weakened, mostly domestic sales, and the export arbitrage window has gradually closed.
The focus of the domestic PVC export market in the second half of the year is the price game between domestic and foreign PVC markets. The domestic market may continue to face the impact of foreign low-priced sources; the second is the centralized maintenance of PVC installations in various parts of the world. India is affected by the increase in rainfall and outdoor construction activities. Decrease, the overall demand performance is sluggish; third, foreign countries continue to face market uncertainties brought about by the impact of the challenge of the epidemic.
Post time: Feb-20-2021