The Domestic PVC Market Remained Depressed In December.

Entering December, domestic PVC Market Still shrouded in haze, from the beginning of August, futures fell by 25%, and the price has returned to the level at the beginning of 2009. In the case that the downstream demand is not effectively released, PVC producers also have little reason for a very good price. It is widely believed that the market will not be as good as this year next year. He Gang, general manager of Shanghai chlor alkali chemical Limited by Share Ltd, even said at the thirteenth China Chlor alkali Forum (Guangzhou) last month that it is not surprising that the price of the PVC market will drop another 1000 yuan / ton before the Spring Festival.

Paul Liu, deputy general manager of Hubei Yihua group, admitted that production capacity far exceeded the market demand. PVC industry Stubborn diseases that are hard to eradicate. In addition, this year's domestic caustic soda prices have repeatedly created new highs, prompting chlor alkali enterprises to continuously improve the operating rate, and the real estate market "restriction order" and other regulatory measures have already had a certain negative impact on the substantive demand of PVC. Therefore, the PVC industry has taken a heavy step this year, and the price of products has been bogged down in the mire. In the current market has entered the demand for off-season, orders reduced, the PVC device started normal, the concerns of enterprises are not groundless.

According to the statistics of China Chlor Alkali Industry Association, it is estimated that the output will be around 12 million 700 thousand tons this year, up nearly 13% over the same period last year. The national chlor alkali industry "12th Five-Year" plan clearly pointed out that the average annual growth of PVC will be controlled at 8%, and the actual output will exceed 5 percentage points compared with the planning target. The excess capacity has brought about a lot of capacity and can only be idle. At present, the domestic PVC business has been running below 60% for 4 consecutive years, and is expected to be around 55% this year. Idle capacity causes a lot of waste. The single expansion of scale seems to be an unenviable curse of the PVC industry. Avoiding the concentrated release of the idle capacity of the market and the impact of the market, resulting in falling product prices has become an urgent problem facing the PVC industry.

Li Jun, director of the chlor alkali industry association of China, pointed out that the expansion of PVC in recent years is mainly concentrated in the resource rich central and western parts of calcium carbide. Although in the first half of the year, the enterprises relying on resource superiority represented by Zhongtai chemical, Xinjiang Tianye, and British power and so on are still at the forefront of profits in the context of rising energy and raw material costs. However, the resource tax collected in China since November 1, 2011 clearly stipulates that crude oil and natural gas will be collected according to the sales tax rate of 5%~10%, the coking coal shall be collected at 8~20 yuan per ton, and other coal shall be collected at 0.3~5 yuan per ton. In the future, whether such enterprises can remain strong will become an unknown number. Wang Fengjun, general manager of Shaanxi Beiyuan Chemical Industry Group Co., Ltd., said that the domestic PVC industry must go back to its rational path of development. The resources and scale advantages of the enterprises will no longer be the dominant factor in the future. The competition between new technologies and traditional technologies will become the mainstream.

According to the introduction, at present, the total production capacity of PVC in China is more than 80% by the method of calcium carbide process. The calcium carbide process PVC is the largest mercury consuming industry in the world. With the promulgation and implementation of the international mercury convention, the policy guidance of the state on the prevention of PVC mercury pollution by calcium carbide method will definitely become an important part of the development of PVC industry in the future. Low mercury and ultimately non mercury production is the future development of PVC industry. In the 12th Five-Year plan of chlor alkali industry in China, it was pointed out that the low mercury catalyst used in the whole industry will reduce the mercury consumption per ton PVC by 50% by 2015. According to Li Jun, chairman of the chlor alkali industry association of China, no mercury will also promote the upgrading of PVC traditional products, make PVC ordinary resin develop to special resin, and develop new chlor alkali chemical product chain, and focus on the development of high value-added organic aluminum products and new chemical materials.

Zhang Yu, director of the China calcium carbide industry association, also said that the current research and calculation showed that the production of PVC from ethylene to coal olefin has obvious cost advantages than calcium carbide acetylene method. The cost of coal to olefin route is equivalent to that of the international oil price at 70 US dollars / barrel. The advantages of coal olefin products in production cost, energy consumption and environmental protection will gradually appear, and will have a certain impact on traditional carbide methods.

Li Jun pointed out that enterprises should pay more attention to resources too much. If we want to make the PVC industry take the road of healthy development, we must speed up the structural adjustment of chlor alkali industry, change the pattern of industrial distribution, and guide the industry to gradually get rid of the growth mode relying solely on resources and pursuing scale expansion through scientific and technological innovation, updating ideas and ideas.