Introduction: in the first half of the year, the price of domestic PVC Paste Resin market dropped dramatically, and the market atmosphere was once depressed at some time. The sharp decline in price was mainly due to the influence of changes in supply side and demand side.
Due to the impact of international public health events, the demand for glove products surged in 2020, driving the domestic PVC paste Resin prices all the way up to a record high. However, with the rapid expansion of the production capacity of glove products industry, there will be overcapacity and weak demand for glove products in 2021, and the glove material market will take a turning point. The paste resin price will turn downward in the second quarter, with a sharp decline.
In the first half of 2021, the price of domestic PVC paste resin showed a trend of first stability and then decline. The price fluctuated little in the first quarter, but decreased significantly in the second quarter. As of June 25, the mainstream price in East China's large plate material market was 9100-10600 yuan / ton, while that in North China's glove material market was 10300-11000 yuan / ton, with some lower prices. The average price of large plate material market in East China is 13345 yuan / ton, up 59.36% compared with 8374 yuan / ton in the first half of 2020, and the average price of glove material market in North China is 21011 yuan / ton, up 126% compared with 9295 yuan / ton in the first half of 2020.
In the first half of the year, the price of paste resin fell sharply, mainly due to the obvious changes in demand and supply
PVC paste resin demand drops rapidly
Affected by the international public health events, the demand for PVC glove products will surge in 2020, the pre-sale orders of product enterprises will increase, and the product prices will continue to rise. Stimulated by high profits, glove product enterprises will begin to expand production. In the second half of 2020, when the prosperity of glove product industry is booming, the paste resin price will soar. By the end of 2020, the domestic glove product line will increase by more than 500, The imbalance between supply and demand of glove products eased, and even overcapacity began to appear. With the improvement of the epidemic situation, the demand slowed down slightly. In the first quarter of 2021, most of the glove products enterprises basically returned the previous orders, with few new orders received. Even some enterprises did not receive full orders in March, and the order price began to fall. Under the pressure of both the order quantity and the order price, the start-up of the glove products industry dropped sharply, and because some glove products enterprises had a large inventory of raw materials, As a result, the demand for glove materials was very low from April, and the glove material inventory of paste resin enterprises began to increase. By the beginning of June, there were less than 500 production lines of PVC glove products in China. By the end of 2020, there were more than 1400 production lines of PVC glove products in China, with a significant decrease in production lines.
Stagnant demand of glove material and improvement of supply of large plate material
Due to the expected weakness of the glove material market at the end of the first quarter, the demand for glove material has weakened, and the enterprise glove material inventory has gradually increased. Some micro suspension paste resin enterprises have started to change production or full production of large plate materials to relieve the glove material inventory pressure. However, on the premise that the demand for large plate materials has not increased, the increase in supply has also brought bad effects to the large plate material market, With the increase of the proportion of micro suspension enterprises producing large plate materials, the market of large plate materials also appeared a situation of oversupply, and the price of paste resin began to decline in early April.
The average start-up of enterprises fluctuates downward, and the support for product prices is limited
As of June 25, 2021, the average start-up load in the first half of the year was 77.86%, of which the average start-up load in the first quarter was 82.28%, and the average start-up load in the second quarter was 73.18%. The start-up load in the second quarter dropped significantly, of which the average start-up load in May was 66.30%, which was the lower start-up month in the first half of the year, Inventory is gradually rising. With the increase of inventory pressure, some enterprises plan to repair in advance to relieve the pressure, and start centralized maintenance in mid May.
To sum up, under the negative influence of both supply side and demand side, the market turned sharply in the first half of 2021, especially in the second quarter when the "rapid decline" mode was started, while the price of raw calcium carbide remained high. By the second half of June, some paste resin enterprises that mined calcium carbide had begun to suffer losses. In the second half of the year, we still need to pay attention to the market supply, demand, raw materials and other factors, and the price will continue to return to rational
