China PVC Profile Industry Operating Rate Inched Down in Jul
Preface: Operating rates at PVC profile enterprises inched down in July. China’s PVC profile market remained in the slack season in July, with soft orders. They mainly engaged in bargain-hunting.
According to SCI’s data, the overall operating rate at 20 sample profile enterprises was 24% in July, down 1 percentage point MoM.
In July, most profile enterprises held operating rates stable, while several cut production slightly. The decrease in operating rates in July was attributed to two factors: on one hand, the sweltering weather restricted construction activities in home decoration and building sectors; on the other hand, the sluggish performance of the real estate market failed to drive demand for profiles, and most profile enterprises indicated insufficient orders.
PVC profiles, also known as plastic steel profiles, are primarily composed of PVC, making them widely used as a new type of construction material. In housing construction, they are mainly applied to sliding and casement doors and windows, railings, pipes, and ceiling materials. The use of PVC profiles in real estate projects is primarily concentrated in the completion or later stages, meaning that PVC profile demand is closely tied to the performance of the real estate sector.
Although the seasonal slack season had a certain impact on the profile market, the slight decline in overall operating rates of profiles in July was ultimately due to weak domestic demand and sluggish profile orders. This was mainly because pressure in the real estate market persisted, with overall real estate-related data showing little improvement, thus failing to provide sufficient support for profile demand. The profile industry is becoming increasingly concentrated, with the domestic market saturated and competition fierce. Therefore, reform and expansion are imperative for profile enterprises. On one hand, they should actively innovate to achieve high-end products and enhance their brand competitiveness; on the other hand, they should strive to explore overseas markets, make overseas layouts, and expand sales channels.
From January to June 2025, cumulative exports of PVC profiled materials reached 70.1kt, up 16.78% YoY. Major export destinations included India, Guatemala, Thailand, Indonesia, and the United States. Since the main export markets for profiles are non-US regions such as Southeast Asia and South Asia, the overall export volume remained stable, maintaining a YoY growth trend. The increase in profile exports provided some support for certain profile enterprises’ operating rates. Currently, the overseas market remains a key focus of market competition. Domestic profile enterprises are strengthening the expansion of new overseas channels and increasing investment in overseas projects, actively promoting the implementation of door and window projects in countries along the “Belt and Road,” and enhancing their influence and competitiveness in the international market.
Looking ahead, downstream profile enterprises still face soft orders, with no signs of improvement in short-term operating rates. The market will likely remain in the slack season in August, coupled with the lukewarm real estate market, the demand is unlikely to increase in August. It is expected that the profile industrial operating rate will likely remain largely unchanged in August. With insufficient orders, profiles enterprises may purchase on a need-to basis at low prices, providing insufficient support for the PVC demand.
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