The spot price of polyvinyl chloride (PVC) fell continuously

The spot price of polyvinyl chloride (PVC) fell continuously
The spot price of polyvinyl chloride (PVC) fell to 6,711.43 yuan / ton on August 4, a drop of 1.2% on the day, a weekly increase of 3.28%, and a monthly decrease of 7.33%.

The spot price of caustic soda rose to 1080.00 yuan / ton on August 4, an increase of 0% on the day, a weekly decrease of 1.28%, and a monthly decrease of 12.34%.

Variety Data of the day Unit of the day’s rise and fall Weekly rise and fall Monthly rise and fall
Spot price: PVC 6711.43 yuan / ton -1.2% 3.28% -7.33%
Spot price: caustic soda 1080.00 yuan / ton 0% -1.28% -12.34%

The chlor-alkali industry is an important basic chemical industry, and the main representative products are caustic soda and polyvinyl chloride (PVC).

caustic soda

At the end of 2020, the global production capacity of caustic soda reached 99.959 million tons, and the production capacity of caustic soda in China reached 44.7 million tons, accounting for 44.7% of the world’s total production capacity, ranking first in the world in production capacity.

As of 2020, the production capacity distribution of my country’s caustic soda market has gradually become clear, mainly concentrated in three regions of North China, Northwest China and East China. The above three regions’ caustic soda production capacity accounts for more than 80% of the country’s total production capacity. Among them, the proportion of a single region in North China continued to increase, reaching 37.40%. The production capacity of caustic soda in Southwest China, South China and Northeast China is relatively low, and the share of total production capacity in each region is 5% or less.

At present, industrial policies such as the national supply-side reform have stabilized the growth rate of the production capacity of the caustic soda industry, and at the same time, the competition pattern has continued to be optimized, and the industry concentration has continued to increase.

PVC

PVC, or polyvinyl chloride, was once the largest general-purpose plastic in the world and was widely used. At present, there are two major consumer markets for PVC in my country: hard products and soft products. Hard products are mainly various profiles, pipes, plates, rigid sheets and blow molding products, etc.; soft products are mainly films, wires and cables, artificial leather, fabric coatings, various hoses, gloves, toys, floor coverings for various purposes materials, plastic shoes, and some special coatings and sealants, etc.

From the perspective of demand, in recent years, the demand for PVC resin in my country has steadily increased. In 2019, the apparent consumption of PVC resin in China reached 20.27 million tons, a year-on-year increase of 7.23%. With the various applications of polyvinyl chloride resin, it is expected that the consumption of polyvinyl chloride resin in my country will reach 22.109 million tons in 2021, and the market prospect is considerable.

Overview of Chlor-Alkali Industry

The basic structure of the industrial chain is to use the diaphragm method or the ionic membrane method to electrolyze salt water to obtain chlorine raw materials, and at the same time co-produce caustic soda, and chlorine gas is used as the raw material for PVC production.

From the perspective of the economic cycle, the chlor-alkali industry is greatly affected by the macroeconomic situation. When the macro-economy is improving, the chlor-alkali industry is driven by consumption and grows rapidly; when the macro-economy is down, the demand for the chlor-alkali industry slows down, although the cyclical impact has a certain lag. , but the trend of the chlor-alkali industry is basically consistent with the macro economy.

With the rapid development of my country’s macro economy and the strong demand support from the real estate market, the “PVC + caustic soda” supporting model of my country’s chlor-alkali industry has developed on a large scale, and the production capacity and output have grown rapidly. my country has become the world’s most important producer and consumer of chlor-alkali products.