In 2005, the PVC market continued to drop in price under generally favourable conditions. At present, the price of calcium carbide method in East China and South China is between 6500 yuan and 6,700 yuan/ton, and the ethylene law is down to 7,000 yuan/ton. From this point of view, the increase in the production capacity of the previous expansion of PVC production capacity has decreased.
Since 2000, China's polyvinyl chloride capacity growth rate has been maintained at about 20%, especially after PVC anti-dumping in 2002, the price is rising. In 2004, under the impetus of high crude oil prices and growing demand, PVC has also been operating at a relatively high price, thus attracting a large number of PVC manufacturers to invest in this area. By the end of 2005, China's polyvinyl chloride capacity will exceed 9 million tons, and it may reach 9.5 million tons, exceeding the United States as the world's largest PVC producer.
However, when many chlor-alkali enterprises in China expanded the production capacity of PVC, the downstream was further affected by the combined effects of macro-control and other factors. In terms of hard products that occupy half of PVC. According to the usual practice, the month of October should be the traditional peak season for PVC demand, but until the end of September, the utilization rate of downstream hard products is still not high. However, the new PVC production capacity still has not stopped. For example, Tianjin Daxuan Chemical Industry Co., Ltd., Quzhou Chemical Group Co., Ltd., Shanghai Huayi Group Company and other large projects will soon be put into operation or will be built soon. The situation of oversupply will be relatively short-term. serious.
Furthermore, market demand determines the relationship between supply and marketing and market prices. In the first half of this year, China's PVC production reached 3.12 million tons, a year-on-year increase of 28%. In the first half of this year, the output of the Northwestern and Shandong provinces, which had the largest output increase in production capacity, increased by 50% and 90% respectively compared to the same period of last year. The negative impact of expansion has gradually emerged.
The author believes that the increase in heat production of PVC should be reduced. At present, it is the critical period for the structural adjustment of PVC products. Whenever PVC polyvinyl chloride production facilities are built, do not blindly follow the trend. Instead, follow local conditions, combine their own actual sources of raw materials, and adopt advanced and mature technologies that they have mastered. Detailed technical and economic comparisons will be confirmed later. Generally speaking, in the coastal areas and where ethylene is abundant, polyvinyl chloride should be used as far as possible to produce polyvinyl chloride, or vinyl chloride and dichloroethane should be imported to produce polyvinyl chloride. Ethylene raw materials are not available and they are not on the coast. It is also difficult to import vinyl chloride or dichloroethane. Where there are a large number of inexpensive coal-electric power sources, large-scale chlor-alkali, calcium carbide and polyvinyl chloride units may be considered to address the demand for polyvinyl chloride resin in the Chinese market.