China PVC Output Loss Due to More Maintenance in Apr
Preface: With the spring overhaul plan of PVC enterprises being determined, there are more known enterprises that plan to take overhaul in April. If profits at chlor-alkali producers fail to improve notably, a couple of producers will shut down units temporarily. In addition, newly added units are planned to put into operation in April, which will weigh on some PVC producers. It is expected that output loss due to maintenance will see a notable increment in April.
More PVC unit maintenance is heard.
From January to March of 2023, the output loss due to maintenance remained at a relatively high level in the recent five years (except for the special year of 2020). In Q1, 2023, the output loss due to maintenance reached 369.36kt, up 29.22kt from the previous quarter.
China Major PVC Powder Unit Maintenance in Apr
Source: SCI
Remarks: RS = restart, SD = shutdown
On the one hand, in previous years, intensive PVC unit maintenance began in April. More PVC unit maintenance has been heard at present. Except shutdown units whose restart was delayed, there are seven PVC enterprises which has plans to take overhauls in April, involving the capacity of 3,340kt/a. In addition, a couple of PVC producers are likely to determine more maintenance plans. Thus, the actual unit maintenance should be concerned.
On the other hand, the output loss caused by temporary shutdown at some enterprises cannot be ignored. In March, a couple of PVC producers extended the maintenance time and shut down units temporarily amid underperformed profits. It is expected that the calcium carbide price will be range-bound in April. Calcium carbide-based PVC powder producers are likely to still face losses in the short term, yet the loss may be eased compared with the earlier period. Currently, caustic soda is still playing a profitable role at chlor-alkali producers. If caustic soda and liquid chlorine prices climb in April, some maintenance chlor-alkali units will restart gradually, which may drag down the output loss. Otherwise, the output loss may move up.
In addition, at the end of February and the beginning of March, the 400kt/a ethylene-based PVC unit at Guangxi Huayi was put into operation, which increased the supply. In March, export orders weakened notably. Thus, the ethylene-based PVC producers faced higher sales pressure, and the spread between the calcium carbide-based PVC powder price and the ethylene-based PVC powder price narrowed. In April, the 400kt/a ethylene-based PVC unit at Wanhua Chemical Group will be put into production. With the capacity of ethylene-based PVC powder extending, the spread may narrow further. Therefore, some calcium carbide-based PVC producers will possibly face higher sales pressure and lower profitability. SCI reckons that they may cut productions amid losses.
To sum up, the output loss due to maintenance may rise to around 180kt in April. Compared with the loss in the same period of the previous four years, the output loss due to maintenance in April 2023 may remain at a relatively high level.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
