There is more positive news, and the price of PVC paste resin is on the rise

The overall price of PVC paste resin in the market improved in February. Before the Spring Festival holiday in February, there was a slight increase in manufacturers. After the Spring Festival, there was a production increase of 100-200 yuan/ton. The main reason for the two increases was that PVC gloves had good orders in the fourth quarter of 2023, and glove factories were more proactive in stocking, which boosted the demand for PVC paste resin glove materials. During the Spring Festival, glove factories resumed normal production, while bulk material factories gradually closed. Production resumed around the 15th day of the first lunar month. The stocking cycle for glove materials is relatively long, and the bulk raw materials are expected to be purchased from the 10th to the 20th of the month, starting from the beginning of the month. In terms of inventory, after the holiday, the inventory of enterprises began to accumulate, but the pressure was not significant. Before the holiday, orders were being shipped one after another. Under the influence of the strong PVC glove market and the low inventory pressure of PVC resin paste enterprises, it is expected that the market will experience strong fluctuations in March.

According to data from Longzhong, the output of PVC paste resin production enterprises increased by 5.34% year-on-year this month, and the capacity utilization rate increased by 1% compared to the previous month.

1、 After the holiday market returns, inventory levels have slightly accumulated

Before the Spring Festival, the shipment volume of PVC paste resin was good, and the manufacturer pre-sales for about 20 days. During the Spring Festival, the manufacturer's inventory accumulated, but they actively shipped after the Spring Festival. Currently, the manufacturer's inventory pressure is not high, and there are few market maintenance companies. It is expected that there will still be a slight accumulation of inventory.

2、 Slight decline in construction near the end of the month

Starting from mid January, the production capacity utilization rate of PVC paste resin manufacturers has remained stable at 67.22%, mainly due to a shortage of parking and maintenance enterprises, and full capacity production of start-up enterprises. As the end of the month approaches, the production of PVC paste resin enterprises has slightly declined, and the production of the Zhongtai Toksun plant in Xinjiang is relatively low, leading to power plant maintenance. Jining Bank of China has significant inventory pressure, with parking maintenance and digestion of early inventory being the main focus.

In summary, in terms of raw material calcium carbide, the domestic calcium carbide market has remained stable with little movement, and flexible prices in the Wuhai region have been cancelled. With the recovery of road transportation, enterprise shipments have improved, and enterprise destocking has become more apparent. There has been a narrow increase in production in Ningxia, but there has been an increase in maintenance equipment and supply instability in the Wumeng region. On the upstream side, there is currently not much inventory pressure, and upstream price increases have boosted the market atmosphere. Traders currently have a large inventory and are actively shipping. After the holiday, downstream markets have gradually resumed production. Glove factories have stated that there is not much problem with orders in the first half of the year. Currently, orders have been arranged for April to May, and it appears that there is support from upstream and downstream demand, as well as support from raw material costs. It is expected that the PVC paste resin market will not face much pressure in March, with high consolidation as the main trend.