Will shutdowns help acetylene-based PVC stabilize in China?
In China’s local acetylene-based PVC market, prices took a downward turn in around mid-February following a rising trend of two months. According to the weekly average data from ChemOrbis Price Index, prices have recorded a cumulative decrease of $60-65/ton since then. Despite bullish coal prices, acetylene-based PVC has extended its bearish tone so far this week given high inventories and unsatisfactory demand amid the high season.
Some players are now arguing that the ongoing and approaching shutdowns might help the market sentiment improve in the near term while others keep their expectations of seeing additional drops, commenting, “Despite the high season, demand is not giving any signs of recovery as buyers only source in small quantities amidst comfortable domestic supplies and weak global trends.”
China’s Sichuan Jinlu shut its 400,000 tons/year acetylene-based PVC plant on March 6 while Pingmei Shengma is planning to shut its 300,000 tons/year plant in the second half of March.
In April, four acetylene-based PVC producers, including Xinjiang Zhongtai, Shanxi Beiyuan, Yibing Tianyuan and Shangdong Xinfa, are planning to shut their plants for maintenance for different durations. These four plants have a total production capacity of around 3.8 million tons/year.
There are also several maintenance shutdowns that will take place in May. Inner Mongolia Yili, Tangshan Sanyou, Xinjiang Tianye and Heilongjiang Tianhua are planning to conduct maintenance shutdowns at their acetylene-based PVC plants, which have a total production capacity of almost 2.5 million tons/year.
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