Can the production capacity utilization rate of PVC paste resin pre-sale by manufacturers continue to increase

Introduction: Since August, the operating load rate of the PVC paste resin industry has slightly increased. Although domestic demand is average on the demand side, the recent increase in export volume has slowed down the increase in factory prices this month, and the market price has increased less than last month.

50.11%: The average start of construction this month was 50.11%, an increase of 9.98% compared to the previous month

This week, Inner Mongolia Junzheng was added for parking maintenance, and there were relatively few maintenance companies this month. According to Longzhong data, the utilization rate of PVC paste resin production capacity increased by 1.66% month on month to 59.02%. The utilization rate of PVC paste resin production capacity in August was 50.11%, an increase of 9.98% compared to the previous month. Entering September, there is still an expectation of an increase in the operating load rate of the PVC paste resin industry, but there is not much room for improvement. This is mainly because although there are fewer routine maintenance devices, some devices are unstable due to insufficient raw materials.

The average profit of PVC paste resin in August was 1310 yuan/ton.

As the price center of PVC paste resin increases, production enterprises gradually reduce losses, and some regions have reached the profit and loss line. In August, the theoretical profit of ethylene based PVC paste resin was 58 yuan/ton, a decrease of 130.21% month on month and a year-on-year increase of 61.11%. In August, the theoretical profit of PVC paste resin using calcium carbide method was 1310 yuan/ton, an increase of 11.97% month on month and 42.39% year-on-year.

Inventory: Enterprises owe a lot of orders

With the increase of maintenance equipment in the second quarter, pre-sales of PVC paste resin production enterprises have increased. On the one hand, the price of PVC paste resin has increased, and upstream production enterprises' shipments have improved, leading to an increase in pre-sales volume. On the other hand, the recent improvement in export orders from PVC paste resin production enterprises has digested market inventory.

Based on the above analysis of the operation of the production enterprise, there is currently no pressure at the production end of PVC paste resin. In the later stage of the supply side, it is expected that there will still be a slight increase in the industry's operating load rate, but there is not much room for improvement. In September, there will still be enterprises parking for maintenance, but there will be fewer maintenance enterprises. In addition, the operating load of Shenyang Chemical and Shandong Langhui will increase. After the initial outstanding orders are paid off, the market supply will begin to increase, and downstream demand has not substantially improved. It is expected that the market price will mainly consolidate at a high level next month.