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The long-term trend of chlor alkali market is still difficult

wallpapers News 2020-08-12

Recently, the price of caustic soda liquid chlorine products rebounded slightly, which seems to make the profits of the deeply mired chlor alkali industry slightly improve.

However, according to the analysis of many industry insiders, this wave of market is only a flash in the pan.

With the continuous release of new capacity, the profitability of domestic chlor alkali industry may further deteriorate.

"In 2013, the domestic chlor alkali enterprises were struggling.

Among the 73 key enterprises monitored by the China Chlor Alkali Industry Association, more than half of the losses have been incurred.

The actual situation is even higher than this figure, which is between 70% 80% A person in charge of chlor alkali enterprise said anxiously.

The market rebound is a flash in the pan.

At present, the domestic liquid chlorine market maintains a good trend.

In October, when Shong hosted the 10th Art Festival, transportation was restricted, but it played a role in accumulating strength for the market trend.

After the festival, the market price began to rise continuously, the price was basically 900-1000 yuan (ton price, the same below).

"Although the market prices in most regions have risen, most of the price hikes are operated by manufacturers lack of downstream support.

Moreover, the resistance of downstream to high price raw materials has increased, the market continues to be under great pressure.

It is expected that the domestic market will be dominated by narrow consolidation in the short term, but in the medium long term, the market is likely to decline.

" Director Zhu of PetroChina Northeast sales company said.

At the same time, the caustic soda market also continued to rise, supported by transportation downstream dem, the mainstream quotation of 32% ion-exchange membrane caustic soda in North China rose to about 600 yuan, the mainstream quotation of high concentration alkali was 970-1000 yuan.

Manufacturers have strong intention to raise prices, the market may continue to rise in the near future.

"The high market price will form a great test for the bearing capacity of downstream products.

In addition, the current situation of oversupply in China is still severe, some new production capacity will be released in the near future, which will exert pressure on the market weaken the driving force of market rise.

" Zhu said.

PVC market did not see improvement, calcium carbide method PVC prices more than plummeted.

Chlor alkali enterprises started to maintain a high level of plant operation, inventory pressure gradually increased, low price competition became more more intense, the real price continued to loosen.

At present, the quotation of manufacturers in Northwest China has dropped to a low level, the factory quotations of manufacturers in other regions have been lowered, the market trading atmosphere is cold.

Due to the high price of ethylene monomer tight supply of goods, the Vinyl PVC mainly adopts horizontal finishing.

"Affected by the typhoon, the transportation in East South China is not smooth, which has a great impact on local transactions.

In addition, downstream manufacturers in the north have successively entered the autumn winter plant maintenance period.

Due to the impact of cold air sudden drop of temperature, the market popularity is insufficient, the PVC price has been hovering at a low level.

" Director Zhu introduced.

In the past 10 years, due to the rapid development of the national economy, most chlor alkali enterprises comply with the market dem mainly focus on the capacity expansion, technology improvement equipment improvement of chlor alkali plants.

Even though there are signs of overcapacity in chlor alkali plants in the past few years, some large medium-sized enterprises are still scrambling to exp production.

some small medium-sized enterprises follow suit.

At present, the production capacity of chlor alkali industry is increasing steadily.

By the end of 2012, China's caustic soda production capacity reached 37.

36 million tons / year, PVC production capacity was about 22.

36 million tons / year.

Take Shong, a big chlor alkali Province, as an example.

This year, the production capacity of chlor alkali will be close to 10 million tons, but only half of it will be consumed in the province.

From January to September this year, the domestic caustic soda output was 21.

06 million tons, an increase of 4.

4% over the same period of the previous year.

the output of PVC was 11.

055 million tons, with a year-on-year increase of 8.8%. "In recent years, the speed scale of the development of the western region have grown rapidly.

Large scale chlor alkali projects in the central western regions have been put into operation, forming a confrontation with the Eastern market.

Chlor alkali Market in eastern coastal provinces has been suppressed suppressed for a long time.

A small rise in the market is just a drop in the bucket, it is difficult to reverse the long-term decline.

" Jilin Baoyuan chemical trading company manager said.

With the continuous release of new capacity of caustic soda PVC, the slow recovery of downstream dem is difficult to effectively digest the supply with obvious growth rate.

In the face of the double negative situation of fluctuation of caustic soda price low stable PVC price, the profitability of chlor alkali enterprises is obviously weakened.

Although the price of domestic caustic soda has a small rise, the market is still in a low level the rising trend is difficult to sustain.

However, the PVC market has continued the weak state of last year, the profit model of domestic chlor alkali production enterprises "replenishing chlorine with alkali" has been gradually broken.

Affected by this, most enterprises take the initiative to reduce the start-up load of the device extend the maintenance period passively.

It is understood that although the reduction of market supply has relieved the social inventory of caustic soda PVC to a certain extent, the price level has not been significantly improved in front of the bleak downstream dem.

The price of liquid chlorine has been lower than the cost price by more than 200 yuan, which makes it difficult for chlor alkali enterprises to rely on the high profits of single products to improve the overall profit space of enterprises.

Industry experts pointed out that overcapacity led to market downturn, especially under the influence of negative factors such as continuous release of production capacity, low raw salt price of raw materials sluggish downstream dem, enterprises lost their profit space, it will take time to recover.

(source: National Petroleum chemical network).


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.