China PVC Powder Industrial Operating Rate to Rise
Preface: Recently, the PVC powder industrial operating rate saw a notable increment as some overhauled units restarted and a couple of units ran at higher loads. However, most PVC powder producers faced low pressure due to a certain amount of presold orders.
The PVC powder industrial operating rate moved up significantly as some overhauled units restarted and a couple of units ran at higher loads.
Entering September, the PVC powder industrial operating rate climbed gradually. Up to September 14, the overall operating rate was 76.91%, up 3.62 percentage points M-O-M, which was the second time overpassing 76% from May. Therein, the operating rate of calcium carbide-based PVC powder was 76.19%, up 3.6 percentage points W-O-W, while that of ethylene-based PVC powder was 79.08%, up 3.7 percentage points W-O-W.
There were fewer maintenance units, dragging down the output loss due to maintenance. PVC output due to maintenance was 64.02kt on September 14, registering a notable decline. In addition, with the calcium carbide industrial operating rate increase, the tight supply of feedstock was eased. A couple of PVC enterprises that cut production due to the shortage of feedstock raised operating rates. Moreover, caustic soda flake and liquid caustic soda prices moved up, propping up the overall profit of chlor-alkali integrated units, so some chlor-alkali producers showed higher interest in producing.
In H2 September, no newly added PVC powder unit maintenance has been heard, coupled with the restart of overhauled units, so the operating rate will possibly inch up. Entering October, as more unit maintenance has been heard, SCI reckons that the operating rate will drop to below 75%.
Major PVC Powder Unit Status
Major PVC Powder Unit Maintenance Plans
PVC inventory available for sale at sample producers saw a W-O-W increase, but the supply pressure was not high.
Up to September 14, PVC inventory available for sale was -214.2kt, up 5.34kt W-O-W. First, the increment in the PVC industrial operating rate propped up the output. Second, PVC powder producers received fewer orders as downstream enterprises and traders showed weak interest in stockpiling. However, presold orders at most producers were relatively high, so the supply pressure was not high. With the Mid-Autumn Festival and National Day holiday coming, PVC producers may cut offers to promote sales.
On the whole, though the PVC powder industrial operating rate saw a notable increment recently, the supply pressure may not be high due to a certain amount of presold orders. With the Mid-Autumn Festival and National Day holiday coming, PVC producers may cut offers to promote sales, which will possibly improve orders.
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