Discontinued overhaul of PVC enterprises led to decline in the market price of calcium carbide

Recently, domestic calcium carbide market prices have declined from the previous period. According to relevant statistics, currently the market price of calcium carbide in Northeast China is approximately RMB 4,200-4,300/ton; in North China, RMB 3,500-3,850/ton; in East China, RMB 4,100-4,250/ton; in South China, RMB 4,004-4,100. / Ton; Central China 3900-4050 yuan / ton; in the Southwest 3700-3800 yuan / ton; Northwest 3550-3850 yuan / ton.

Zhong Yingzhi, a researcher of China Investment Advisor Chemical Industry, pointed out that PVC is the major consumer of calcium carbide. The recent drop in domestic calcium carbide market prices is mainly due to the lack of demand for calcium carbide in the downstream PVC industry. Since July of this year, PVC production enterprises in downstream of calcium carbide have successively stopped production and overhaul, which has affected the demand for calcium carbide to a certain extent, which has led to the decline of domestic calcium carbide prices.

According to relevant data, in July of this year, Shandong Haihua, Shandong Dongyue, Inner Mongolia Sanlian, Qingdao Haijing, Tianjin LG Chemicals, Formosa Ningbo, Hebei Jinniu, Shaanxi Jintai chlor-alkali PVC production enterprises have successively stopped and overhauled, it is expected that in August Some PVC plants will still be shut down for maintenance, and the demand for calcium carbide will be greatly reduced.

Moreover, the current international macroeconomic situation is not optimistic and the market has a strong wait-and-see atmosphere. Even though PVC** continues to drop sharply, the PVC spot market transaction is also relatively light. Currently, PVC's prices in East China and South China markets have fallen by 50-100 yuan/ton, but the market volume is still limited, which will also affect domestic calcium carbide market prices to a certain extent.

Zhang Yulin, research director of China Investment Consulting Co., Ltd. pointed out that since last year, the development of China's real estate market has been suppressed, and now the demand for PVC in the real estate market is very limited. At present, China’s inflation is facing a severe situation. In order to control inflationary pressures, China will continue to implement tight monetary policies. Some PVC production companies may have insufficient funding sources and their operating rate will be affected, which will also reduce the demand for calcium carbide.

The "2011-2015 China PVC Industrial Investment Analysis and Prospect Forecast Report" released by the China Investment Advisor shows that PVC is the main consumer of calcium carbide, and PVC is mainly used in the construction field. In recent years, due to the country's macro-control, the development of the domestic real estate market has been limited. This has reduced the demand for PVC to some extent, and the demand for calcium carbide has also dropped. However, in the long run, with the introduction of affordable housing and affordable housing, the demand for domestic PVC will increase and the demand for calcium carbide will increase.