Since entering 2018, the overall market for PVC raw materials has remained high. Even if there is a slight fall, it will fluctuate with the market. As the saying goes, there is no love and hate for no reason, and price hikes are not groundless. In 2018, it has entered the second quarter. More inducing price increase factors are coming and coming.
Let's read together to understand the factors that contribute to the price increase of PVC raw materials.
1. Since the beginning of the Sino-US trade war, chemical giants have issued price-raising letters. ACR's raw material, DME, has been affected by anti-dumping. It is difficult for imported raw materials to enter the market, resulting in soaring prices of dimethyl methacrylate and ACR. Prices have been raised by 2,000 yuan per day. Tons have become commonplace.
2. In the recent past, the Syrian issue has affected the nerves of the entire market. As the possibility of military operations in Syria, such as the United States and the United Kingdom, has continued to increase, it has aggravated the concern of the disruption of the global oil supply chain. Taking into account that crude oil is a chemical raw material PTA, propylene, propane, benzene, toluene, xylene and other chemical raw materials upstream products, industry sources said that the Syrian war is expected to continue the fermentation, or will cause chemical raw materials related to the industry chain product substantially jump.
3. From 2016 to now, the environmental protection policies have become more stringent. For example, manufacturers of whitening powder raw materials have been affected by environmental protection inspections and are always in the stage of phased production suspension. The supply is in short supply.
4. The “Shanghe Summit” held in Qingdao on June 9 has issued a notice that all shipments to Qingdao Express, logistics, and customs will be prohibited from entering Qingdao on May 1 and will continue until the end of June. Some large chemical fertilizer manufacturers have received notices of shutdowns in April and began to stop production. A large number of ACR, CPE, PE wax and other enterprises are concentrated in Shandong Province. It is estimated that they will be affected to a certain extent. It is expected that there will be a large number of customers stocking in May. Go higher.
5. In the 2-4 months of chemical accidents, chemical companies caught fire and explosions occurred. Once an accident occurs, the entire industry may face reshuffling and rectification. Once the production is stopped and production stops, it will drive up prices.
6. On January 1, 2018, the environmental protection tax was formally implemented. According to the tax law, the environmental tax is declared on a quarterly basis, which means that on April 1st, the environmental tax will usher in the first tax period. The author understands that lead salt stabilizer manufacturers and CPE manufacturers are all within the scope of the levy. All waste water and waste gas production companies are within the scope of the levy. Tax burdens are increasing, and they will surely be paid through rising prices.
7. In April and May, there were too many manufacturers of double methyl esters, and the entire industry was in tight supply, which exacerbated the price increase. This month, PVC resin manufacturers collectively ushered in the maintenance season, and it also drove up the price of resin; some time ago, phthalic anhydride and octanol The discontinuation of production by manufacturers resulted in an increase in the price of plasticizers such as DOP.
8. When prices rise, businesses must hope to maintain the price increase situation, make more money, and make a good market to keep abreast of articles and promote the maintenance of high prices; the downstream is incapable of dealing with high prices, and buying up or not buying will lead to increased demand. This in turn has promoted the rise in prices and formed a cycle of price rises.
To sum up, the combination of various factors has led to a high PVC raw material price and a situation where oil can be smashed. It is expected that the price will continue to increase after the above situation is temporarily difficult to change.