China PVC Market Price Status and Supply and Demand Analysis in 2023

In 2023, the market price of PVC in China will not fluctuate much. At present, PVC price is mainly affected by the following factors:

I. Raw material supply price

According to industry analysis, in 2023, the price of PVC raw materials is roughly stable, due to the rising prices of oil and fuel in China, but considering the increasing reserves of oil and fuel in China, as well as policies such as restricting the supply and controlling the scale of production, basically, the supply price of PVC raw materials can be stabilized at a level.

II. Consumption Demand

In 2023, the consumer demand for PVC in China will still increase, mainly because PVC material is increasingly popular among consumers due to its durability and durability compared to other materials, as well as its low cost. Secondly, the consumer demand for PVC in different industries, such as construction and decoration, recycled water treatment, electrical and electronic, machinery and other agricultural services, is also increasing.

III. Market competitiveness

Due to the development of new PVC technology in China, a large number of new technologies have been applied to the production and consumption of PVC, which has boosted the development of the PVC market in China, and the quantity has been increasing. While this means that the Chinese PVC market has become more competitive, the profit potential and opportunities for early stage investors have also increased.

IV. Industry Regulation

Government attitudes have also had an impact on the PVC market, the industry and PVC prices. With the popularization of green thinking in general, the government continues to introduce relevant environmental protection policies, thereby limiting and controlling the competitiveness of the product market, which also makes China's PVC market prices to a certain extent to maintain stability.

Overall, the price of PVC is affected by many factors, and its future development will be conducive to improving the operational efficiency and competitiveness of China's PVC market, but it will also push the PVC market price to remain stable, and companies will not only make profits, but also provide better quality services to customers.

China PVC Market Price Status and Supply and Demand Analysis 2023

I. PVC Market Price Status

With the advent of 2023, the status quo of China's PVC (polyvinyl chloride) market price shows a steady rise. Especially at the end of last year, China's PVC market price was influenced by the favorable impact of raw material purchase price increase, the price climbed rapidly, the highest once reached 11,000 yuan / ton, almost reached the level of the rise.

According to official data, as of May 20, 2023, China's PVC market prices have narrowed the rise to 6,856 yuan / ton, and on May 25, the price stabilized at 6,800 yuan / ton or so, compared to 5,600 yuan / ton in January of that year, a significant rise.

II. Impact on China's PVC market price

China's PVC market prices are in an upward trend, the impact of China's PVC market prices are mainly the following points:

(1) restricted supply of raw materials: due to the restricted supply of raw materials, the main raw materials ethylene and chlorinated liquid in fact become scarce, for the price of raw materials has risen significantly, which directly pushes up the Chinese PVC market price.

(2) Increased environmental protection enforcement: more and more enterprises take the initiative to reduce pollution sources and inefficient production capacity, while law enforcement agencies have also increased the supervision of polluting enterprises, which also directly led to environmental protection bans to increase, which has become a factor to promote the price of China's PVC market.

(3) Changes in the price of upstream raw materials: PVC market prices are controlled by upstream raw materials. For example, the reason for the price increase can also be attributed to changes in upstream prices such as ethylene and clinker.

(4) supply exceeds demand: from the market supply and demand point of view, China's PVC market supply exceeds demand, and due to the production process is more complex, the general enterprise inventory is limited, which also makes the market price steady and slightly rising, but the recent market price convergence.

III. Future market price trend

From the market supply and demand point of view, China's PVC market has been in a state of supply exceeding demand, and with the advent of the summer season, the price level in the market has further increased, and many PVC producers will benefit from the narrowing of demand in the summer season.

China's PVC market is facing unstable market demand and will not be in a rising state for a long period of time. It can be seen that the price trend of China's PVC market will fluctuate in the future, and it is possible that the price will not continue to rise sharply due to the above factors.

In short, as China's PVC market prices continue to rise steadily, the future price trend of China's PVC market will show a steady upward trend. However, due to factors such as the rise of upstream auxiliary materials and the summer season, the future price of PVC will still be unstable, and corporate transactions should not overly pursue price increases, and transactions are biased towards win-win situations.

Guangzhou Yinsu Flame Retardant New Material Co., Ltd.

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