East China Seeing Fewer Arrivals of Xinjiang-Origin Cargoes
Preface
The social inventory of PVC continued slipping in East China. Downstream users replenished the inventory when PVC prices hovered at lows. Besides, PVC market in Xinjiang performed well, so price spread between Xinjiang market and East China market promoted some resources to flow into Xinjiang instead of East China.
Judging from the regional distribution of capacity, Xinjiang is the second largest PVC production area in China, and Inner Mongolia is inferior to that. Up to now, there are 5 PVC producers in Xinjiang with total capacity of 4.92 million tons. Due to insufficient demand in Xinjiang, the production and sale at PVC producers in Xinjiang are basically separate. Most of resources are sent to East China, South China and Southwest China, besides Xinjiang. East China is the largest destination for resources in Xinjiang, and Xinjiang-origin resources account for about 1/3 of the entire East China market.
For the sources of goods in Xinjiang, about 45% of them are sent to East China, about 30% are sent to South China, and only 8% are sent to northwestern regions such as Xinjiang. However, in certain time periods, because of the price difference between Xinjiang and other regions, the flow of regional sources of goods will also change to a certain extent.
Recently, low prices in the East China PVC market have decreased, and the spot availabilities in Xinjiang, such as Xinjiang Zhongtai Chemical and Xinjiang Tianye, are scarce. Some traders have already begun presales, so the current spot prices are relatively high. In addition, it is understood that there are still not many sources of goods in transit.
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