In August this year, the market overall tumbled in the plastic case of polyvinyl chloride (PVC) but the rally unabated, from August to October this year, PVC prices more than 1200 yuan / ton, or more than 22.3%, the plastics industry become a dark horse.

The high cost of supporting PVC prices

China is a less gas, more coal, less oil, the current domestic production of PVC by calcium carbide based 80%. Therefore, the price trend of calcium carbide seriously affect the price trend of domestic pvc. 7 months late this year, the central environmental protection inspection team into Inner Mongolia, Ningxia and other places, the calcium carbide production due to huge energy consumption, serious environmental pollution, environmental protection has become the focus of supervision object inspection group. In the environmental remediation under pressure, was forced to shut down production of calcium carbide and PVC production enterprises in Inner Mongolia, resulting in short-term supply shortage of calcium carbide, prices continued to hike. Start the load to maintain production reduce individual production enterprises, the impact of domestic PVC manufacturers offer lead to supply and demand, continued to pull up. At present, the calcium carbide price still maintain quite high, support the formation of PVC prices, the short term is difficult to have a big decline, rising coal and coke prices steady and, later will continue to increase as pvc.

In addition, highway freight prices also affected the cost of production of pvc. In August 18th this year, the Ministry of transport and the Ministry of Public Security jointly issued “on the issuance of” rectification of highway freight illegal overloading behavior special action program “notice”, from September 21st this year to August 2017, will carry out the focus of remediation, severely crack down on illegal highway truck overrun overload, forced red card and other prominent violations, strict implementation of national standards “cars, trailers and train the external dimensions, axle load and limit”, namely the cargo transport vehicles shall not exceed the total mass of 49 tons, 4 meters below the height limit. According to the estimates, then the road will rise 30~50 yuan / ton. At present, just the implementation of policies, the market is still waiting, some restrictions on the formation of motor outage, lower demand, market goods decreased, some manufacturers said that compared with the previous, transport of goods and freight less, but higher. Only part of the increased cost of PVC in the quote, in the short term, PVC prices continued to pull up.

The inventory is low, demand is bullish