China PVC Glove Industry Operating Rate Was Decent in H1 Sep
Preface: In H1 September, China’s PVC glove enterprises’ operating rates were decent. They mainly purchased on a need-to basis. In October, some PVC glove enterprises may stockpile moderately due to passable orders.
Operating Rates of Sampled Glove Enterprises in End-May
In H1 September, operating rates at domestic PVC glove manufacturers were decent. According to SCI’s monitoring of 20 sampled enterprises, large and medium-sized PVC glove manufacturers accounted for the most active facilities, with over 490 production lines operating - an expansion from August.
As for PVC glove materials, delivered prices of glove materials in East China reached RMB 6,600-6,900/mt in mid-September, up 0.37% from late August. In September, most domestic microsuspension PVC paste producers hold bullish sentiments amid no inventory pressure and pre-sold orders to fulfill. In addition, the price of imported glove materials rose slightly. Therefore, some microsuspension-process producers tentatively raised their quotations for glove materials slightly in September. Although downstream PVC glove enterprises still had demand for feedstock procurement, their enthusiasm for purchasing high-priced grades was low, and they still mainly focused on procurement at lower prices. After order negotiations, the price increase of the glove-grade PVC paste market was limited.
China’s glove material prices may remain stable in the short term.
As for the supply, in H2 September, several microsuspension-process producers conducted rotating maintenance on their units, but overall supply saw little change. Most microsuspension-process producers had no inventory pressure, and some still had pre-sold orders to fulfill. However, enterprises held a cautious market sentiment and lacked momentum for further price increases.
As for the demand, downstream PVC glove enterprises may maintain higher operating rates. Some PVC product enterprises had received pre-sale orders until October. Nevertheless, their feedstock inventory was relatively sufficient, so it is expected that subsequent feedstock procurement will still focus on moderate purchases or purchases at lower prices, with continued wait-and-see attitudes toward high-priced grades.
As for the cost, calcium carbide EXW prices may first stabilize and then inch down. End users’ purchasing prices may remain stable. Costs may give limited support to the PVC paste market.
It is expected that the price of PVC paste (glove-grade) will see little change in H2 September, with narrow-range adjustments possible in some regions.
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