Low Operating Rate at PVC Paste Glove Product Enterprises

SCI99

2019-06-13

Low Operating Rate at PVC Paste Glove Product Enterprises

In May, the overall operating rate at PVC paste glove product enterprise was low, so the downstream demand for PVC paste was weak. And it’s hard to improve the demand in June.

The overall operating rate at 20 sample enterprises was 61% in May, down 1% from April. China’s PVC paste glove enterprises ran their units steadily in May, and the overall operating rate declined. Therein, the overall operating rate of PVC paste glove product units hovered at 50%-60% in Hebei, and that was average in Shandong. Restricted by scarce orders, some small-scale enterprises ran units at low capacity, and even some enterprises shut down units.

The low operating rate at glove product enterprises led to sluggish demand for PVC paste. A few glove materials prices at SPVC paste enterprises were lower than general materials prices. In order to ease the inventory pressure, some enterprises adjusted production ratio of different grades. The delivered prices of calcium carbide-based PVC paste glove materials in East China hovered around RMB 8,200-8,500/mt in cash, and that of calcium carbide-based PVC paste general materials in East China hovered around RMB 8,200-8,600/mt in cash. The sales of glove materials were ordinary.

On the supply side, the PVC paste unit maintenance was intensive in May. The previously-stopped units will resume production gradually in June, and there will be sparse newly added turnaround plans, so the PVC paste supply will rally. On the demand side, the demand for glove will remain insipid. The operating rates at PVC paste general materials enterprises were stable, but they showed resistance to high-priced resources.

The imbalance between supply and demand inPVC paste market will be eased in June. The operating rates at glove product enterprises will be still low, having limited support to the demand for PVC paste glove materials. The demand for general materials will keep firm, and market players will hold a wait-and-see stance. SCI predicts that offers for PVC paste will be largely unchanged, but some suppliers are likely to cut offers to promote sales.

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