PVC Industrial Operating Rate in Shandong Rose Amid Improved Profits
Preface: From H2 February, integrated profits at chlor-alkali enterprises improved gradually. Up to March 14, integrated profits at chlor-alkali enterprises in Shandong was RMB 210/mt, up RMB 85/mt from end-February, mainly driven by the price increment in liquid caustic soda and liquid chlorine. PVC enterprises in Shandong showed higher production enthusiasm amid improved integrated profits, propping up the local operating rate.
As liquid caustic soda and liquid chlorine prices climbed, integrated profits at chlor-alkali enterprises improved in Shandong.
From H2 February, liquid caustic soda prices went up. First, some units planned to take overhauls. Second, solid caustic soda prices rose. Third, downstream demand climbed due to low feedstock inventory and expectations for increased orders. Liquid chlorine prices also rose notably due to short-term unstable supply affected by unit faults. Up to mid-March, the mainstream price of liquid chlorine rose to RMB 400/mt, up RMB 325/mt from end-February.
PVC powder social inventory remained high amid weak fundamentals, so spot prices hovered at lows. Though export orders increased after the Chinese New Year holiday, high inventory and weak domestic consumption restricted the increment in the PVC powder market.
The PVC industrial operating rate in Shandong rose.
Entering March, amid the improvement in profits at chlor-alkali enterprises, the PVC powder industrial operating rates in Shandong rose. From March 8 to March 14, the weekly operating rate in Shandong was 73.04%, up 1.37 percentage points W-O-W.
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