PVC resin annual report 2023

Declaration

The report analyzes the current development status of the PVC industry and predicts the long-term and short-term development trends of the PVC industry. The report's data mainly comes from the National Bureau of Statistics, the National Information Center, and the General Administration of Customs.

Chapter 1 Annual Analysis and Prediction of PVC Industry Chain

1.1 Overview of PVC Market in 2023

In 2023, the domestic PVC market has clearly differentiated, and the Spring Festival has become a watershed for the high prices of the two markets. Among them, prices in January and early February both operated at relatively high levels annually. However, in the later period of the Spring Festival, prices in the two markets weakened and continued to decline until early June. In late June, the market bottomed out and rebounded, entering the peak season of the third quarter. Prices in the two markets continued to rise, but although the increase was considerable, it was inevitable that they did not rise before the Spring Festival. As of the publication date in 2023, the fluctuation range of spot prices is between 1000 and 1200 yuan/ton, with a range of 18.26% -22.11%. The main futures company has a price difference of 1104 points between the high and low points in 2023.

In the first stage (from January to early February), the factors leading to the rise before the Spring Festival can be summarized as follows: 1. The domestic epidemic situation will gradually loosen from November to December 2022, with a significant turning point in epidemic policies. The expectation of economic recovery has suddenly increased, and commodity sentiment has shown a radical upward trend. 2. PVC, as a typical representative commodity in the real estate sector, has become the first variety to rise after its resurgence in the expectation of economic recovery. Spot prices are also constantly following, and there has been a different inventory digestion in the off-season under the supply-demand game compared to previous years. 3. The support of policies in the real estate sector and the establishment of a dynamic adjustment mechanism for the first housing loan interest rate policy have further stimulated the rise of prices in both futures and current markets.

The overall rise in the second stage (early February to mid June) ended hastily after a relatively short period of time, and the two markets have weakened and continued to decline since the end of the Spring Festival. 1. The expectation of economic recovery after the holiday is not good, and the spot market is constrained by demand. Inventory digestion is slow, and merchants with poor shipments are constantly entering hedging positions. Moreover, PVC is constrained by weak fundamentals, and futures market funds are gradually turning to bears. 2. The inventory digestion caused by the rising stage actually becomes a pressure on the supply and demand level in the second stage. The sustained weak demand leads to a sluggish peak season from March to May, and the rise depends on the supply and the decline depends on the demand. The high inventory under the supply-demand game has not been well normalized for destocking. 3. The monthly data of the real estate sector has shown a significant year-on-year decline, with a decrease in orders from PVC terminal product companies and a reduction in product profits, which has led to companies becoming more cautious in purchasing PVC. 4. In mid March, a banking crisis broke out in the United States, which then spread from the United States to Europe. The expectation of an economic recession increased abnormally, completely reversing the buying and selling atmosphere of commodities. In addition, the Federal Reserve's interest rate hikes in the first half of the year were repeatedly disrupted.

In the third stage (mid June to mid September), there was a trend of bottoming out and rebounding. After confirming the bottom repeatedly in mid June, the market conditions in both markets began to rise. Overall, there was a good upward trend from late June to mid September. 1. During this period, the prices of the two futures markets hit bottom and rebounded, leading to bullish sentiment in the market. The departure of bears also caused the futures prices to be prone to rising but difficult to fall. 2. PVC cost ports have shown support, while the prices of blue charcoal and calcium carbide have also risen. In addition, Saudi Arabia and Russia have implemented production cuts in the crude oil sector, which has supported oil prices. 3. The price of Formosa Plastics in Taiwan, China, China, continued to rise from August to September, and the overall PVC export increased significantly on a month on month basis. The manufacturers and traders reported that export orders were well received, driving weak domestic demand. 4. The stimulation of policy ports guided the trend of the third quarter, mainly targeting the "16 financial regulations" in the real estate sector, as well as the meeting of the Political Bureau of the Communist Party of China Central Committee to adjust and optimize real estate policies in a timely manner. The central bank is lowering interest rates! Lowering the SLF interest rate by 10 basis points and so on. The policy continues to ferment, causing most commodities to record an increase. The overall PVC exhibits good peak season characteristics.

After the end of the upward trend in the fourth stage (mid September to December), the annual second weakening will begin in mid to late September. 1. Firstly, the monthly real estate data has continued to perform poorly, with high PVC inventory and weak demand once again becoming a pressure factor for both futures and futures markets. After the 2309 contract moved to another month, the 2401 contract saw a return of short positions. 2. The domestic economy does not have a good growth momentum, and many signs in the economic cycle have shown that both the manufacturing and demand consumption industries are currently facing a weakening situation, and PVC has erupted into a supply-demand contradiction. Resulting in continuous price drops in both markets. Retest the low position in front of the main unit. 3. During the National Day holiday, Brent crude oil prices fell by about 11%, while WTI crude oil prices fell by 8.80%, causing a downturn in crude oil products and a return to a weak domestic market. 4. Taiwan, China Formosa Plastics prices continued to decline in the fourth quarter. 5. The policy port in the fourth quarter has been boosted and weakened. 6. Concerns about the US debt crisis have reignited.

Overall, after experiencing three consecutive years of extreme market conditions from 2020 to 2022, 2023 has gradually returned to a market change based on supply and demand. The overall weak fundamentals have led to a lack of good performance in the market. Although there has been an increase, the sustained and large-scale downward trend still dominates.


From the comparison table of the highest average price of PVC in China from 2017 to 2023, it can be seen that its highest point showed a gradual downward trend from 2017 to 2020. In 2021, due to economic recovery and the serious impact of foreign epidemics, domestic PVC exports have reached a high level in the past five years, coupled with the consumption of domestic demand. In addition, inflation in the domestic economy has to some extent helped prices soar, and the high points have shown extreme characteristics. Starting from 2022, the price of PVC in China has gradually revised back to a rational cycle, and the high point has also shown a downward trend. The weak supply and demand fundamentals in 2023 have led to further weakening of prices, and the high point has also shown a significant downward trend of 2900-3000 yuan/ton compared to 2022.


1.5. 2024 PVC Market Forecast

In 2023, with a return to fundamentals, the price trends of the futures and futures markets were weak, losing some attention among many commodities, and bears dominated the market for a long time. For the future prices and market trends of the two markets, let's take a look at the following points:

From a supply perspective, in 2024, new production capacity will be added, including 300000 tons from Zhejiang Zhenyang, 100000 tons from Dezhou Shihua, 300000 tons from Shaanxi Jintai, 200000 tons from Gulf Chemical, 300000 tons from Gansu Yaowang, and 400000 tons from Bohai Development. The investment in new production capacity may further intensify competition, the increase in supply, relative looseness, or further pressure on prices, and high inventory in the supply-demand game may still test the market.

From the perspective of demand, PVC, as a representative of real estate commodities, has shown weak performance in real estate and a year-on-year decline in various data. As a result, PVC end product enterprises are facing significant order pressure. The reduction in profits has led to close tracking of PVC prices in the procurement ports of product enterprises. In the spot market where spot prices are prevalent, the procurement mode is gradually shifting towards buying down instead of buying up. Therefore, the dual effects of supply and demand may limit the high points of future prices in both markets. The demand for PVC in downstream emerging markets such as PVC flooring, PVC-O pipes, PVC medical products, PVC automotive products, and soft products may further increase.

From the perspective of exports, the Indian market, as a battleground for exporting PVC, has become increasingly sensitive to price changes as the market develops and improves. Some foreign investors have begun to pay attention to changes in the domestic futures market. Moreover, PVC produced by the United States based on low-cost raw materials will also compete with PVC produced in China. But since the opening of the export window, exports in 2023 have become a certain normal volume, so it is expected that exports will continue to boost in 2024, reducing the competitive pressure on domestic sources of goods.

From the perspective of futures: Currently, both PVC futures and futures markets are strengthening, and with the listing of caustic soda futures, chlor alkali balance and future cross variety arbitrage may gradually be put on the agenda. The two major products of chlor alkali enterprises, PVC and caustic soda, may attract more capital attention, and the changing trend may further affect the spot market. But with the close linkage between futures and present, the influencing factors of the two cities in the future are also becoming more diverse.

From an economic policy perspective, the real estate sector, as an important pillar of the domestic economy, may continue to introduce a series of policies to boost PVC in 2024, and domestic economic growth will still have a certain impact on PVC. Therefore, there are certain positive expectations from the policy perspective.

In summary, there may still be certain constraints on the supply and demand fundamentals as well as the real estate sector in the future development of PVC in China, which will lower the expected high point in 2024. However, there may be more complex and diverse influencing factors in the market development. Therefore, although there is some pressure on the PVC market in the current two markets, the changes in the expected market will still be within the range of 1000-1500 yuan/ton.

Chapter 2 Analysis of PVC Futures

The total number of domestic PVC deliveries from January to November 2023 was 79014, equivalent to a total of 395070 tons of PVC in stock. As the combination of futures and cash deepens, the delivery volume gradually increases.

2023 PVC Futures Related Adjustments

On April 13, 2023, the Dalian Commodity Exchange added the "Jiahua" brand of Zhejiang Jiahua Energy and Chemical Co., Ltd. as the PVC futures delivery brand of the Dalian Commodity Exchange; Add the "Salt Flower" brand of Qinghai Salt Lake Magnesium Industry Co., Ltd. and Qinghai Salt Lake Yuanpin Chemical Co., Ltd. to the PVC futures delivery brand of Dalian Commodity Exchange.

On April 28, 2023, the Dalian Commodity Exchange revoked Shanghai Yuansheng Warehousing Co., Ltd.'s designated warehouse qualifications for linear low-density polyethylene, polypropylene, and polyvinyl chloride.

On May 26, 2023, the Dalian Commodity Exchange added Zhejiang Jiahua Energy and Chemical Co., Ltd. as a designated factory warehouse for polyvinyl chloride.

On June 16, 2023, the Dalian Commodity Exchange added China Resources and Resources Development Co., Ltd. as the delivery warehouse for polyvinyl chloride group, with branch warehouses including China Resources and Resources Development Co., Ltd. Shanghai Lingang Branch, China Resources and Resources Development Co., Ltd. Shanghai Dachang Branch, China Material Storage and Transportation Guangzhou Co., Ltd., and China Resources and Resources Nanjing Logistics Co., Ltd. Binjiang Logistics Center. The qualification for designated PVC warehouses of China National Chemical Corporation and China National Material Storage and Transportation Corporation Guangzhou Co., Ltd. has been merged into the qualification for delivery warehouses of China National Chemical Corporation Group.

On July 7, 2023, Dalian Commodity Exchange cancelled the designated inventory location for polypropylene and polyvinyl chloride at Zhejiang Yong'an Capital Management Co., Ltd. Shanghai Yuansheng Warehousing Co., Ltd. Add COSCO Shipping Logistics Co., Ltd. as the delivery warehouse for PVC Group, with Shanghai COSCO Shipping Logistics International Storage and Transportation Co., Ltd., Zhenjiang COSCO Shipping Warehousing Development Co., Ltd., and Jiangyin COSCO Shipping Logistics Supply Chain Co., Ltd. as branch warehouses.

On October 13, 2023, the Dalian Commodity Exchange (hereinafter referred to as the Dalian Commodity Exchange) added Tianjin and Shandong as delivery areas for PVC futures, starting from the implementation of the V2410 contract. We are now publicly soliciting designated delivery warehouses for PVC futures. 1、 Scope of solicitation: We are currently soliciting qualified designated delivery warehouses for PVC futures in Tianjin and Shandong regions. 2、 Premium increase: The premium increase for the designated delivery warehouse in Tianjin is set at -150 yuan/ton, while the premium increase for the designated delivery warehouse in Shandong is set at -100 yuan/ton. 3、 The designated delivery warehouses in Tianjin and Shandong have been in operation since the V2410 contract.

On November 20, 2023, starting from the trading session on November 22, 2023 (i.e. the night trading session on November 21), Dalian Commodity Trading will implement trading limits on futures of soybean meal, polyvinyl chloride, soybean oil, polypropylene, corn, and polyethylene, with 18000 lots of polyvinyl chloride.

On December 1, 2023, the Dalian Commodity Exchange cancelled the designated delivery warehouse qualification for linear low-density polyethylene and polyvinyl chloride of Nanchang Warehouse Management Group Co., Ltd.

Chapter 3 Analysis of PVC Upstream and Downstream

In 2023, the total effective production capacity of PVC in China was 29.045 million tons, with a production capacity of 20.23 million tons for the calcium carbide process pathway, accounting for 69.65%, and 6.98 million tons, accounting for 24.03% of the ethylene process pathway. The production capacity of resin paste is 1.415 million tons, accounting for 4.87%. Among them, Qinghai Salt Lake has a natural gas production capacity of 220000 tons, accounting for 0.76%, and Dezhou Shihua has a production capacity of 200000 tons, accounting for 0.69%.

4.2 Changes in PVC production capacity from 2012 to 2023

In 2023, China's domestic production capacity will increase by 950000 tons, with an exit scale of 0 million tons and a net increase of 950000 tons.

Chapter 5 Analysis of PVC Import and Export

5.1 Analysis of import volume and price of polyvinyl chloride and PVC in 2023

The cumulative import quantity from January to October 2023 was 319600 tons, an increase of 54500 tons compared to last year. The increase is 20.55%, and the import volume of PVC has slightly increased.

5.2. Analysis of import source countries for polyvinyl chloride and PVC in 2023

According to the latest statistical data, from January to October 2023, China imported 169400 tons of PVC from the United States, accounting for 52.99% of the total import volume; Imported 589900 tons from Japan, accounting for 18.45% of the total import volume; Taiwan, China imports 44500 tons, accounting for 13.92% of the total imports.

5.3. Analysis of export volume and price of polyvinyl chloride and PVC in 2023

The cumulative export volume from January to October 2023 was 1.9078 million tons, an increase of 158100 tons compared to last year. The increase is 8.07%, and the export volume of PVC has increased relatively significantly, supplementing weak domestic demand.

5.4 Analysis of destination countries for exporting polyvinyl chloride and PVC in 2023

According to the latest statistical data, from January to October 2023, China exported 936600 tons of PVC to India, accounting for 49.10% of the total export volume; 85000 tons to Bangladesh, accounting for 4.46% of the total export volume; To Egypt, there are 80200 tons, accounting for 4.21% of the total export volume.

Chapter 6 Analysis of PVC Production, Operating Rate, and Maintenance Losses

According to the latest statistical data, the cumulative PVC production from January to November 2023 was 20.8206 million tons, an increase of 653300 tons or 3.24% year-on-year. The investment in new production capacity is the main reason for the increase in production.

According to the latest statistical data, the operating load of PVC plants in China was at a high level in 2023. In February, due to the Spring Festival and the corresponding spring inspection starting in April, the operating rate declined slightly. Compared with the operating rate in 2022, the operating rate in the second half of 2022 decreased significantly due to the sharp decline in prices in both cities, which also affected the operating rate of PVC plants in the first half of 2023. But in the second half of 2023, the operating rate gradually recovered and remained above 80%.

6.3. Analysis of Loss from PVC Maintenance in 2023

According to the latest statistical data, the domestic PVC maintenance loss from January to November 2023 was 2.1103 million tons, a decrease of 107200 tons compared to last year's 2.2276 million tons.

Chapter 7 Apparent Consumption of PVC

7.1. Apparent consumption of polyvinyl chloride and PVC in 2023

According to the latest statistical data, the cumulative apparent consumption of PVC in China from January to October 2023 was 17.1978 million tons, a year-on-year increase of 17.0458 million tons, an increase of 152100 tons, or 1.79%.

7.2. Import and export dependency of polyvinyl chloride and PVC in 2023

According to the latest statistical data, the import dependence of PVC in China was relatively small in 2023, with a high self-sufficiency rate of PVC. In the first quarter, there was a different off-season inventory digestion compared to previous years, resulting in a slight increase in dependence. This is also reflected in the import volume, but in the second quarter, it began to return to normal and dependence decreased.

7.3 Proportion of PVC exports and production in 2023

In 2023, the monthly export volume of polyvinyl chloride and PVC in China has become the norm. According to the proportion of export volume to production data, the proportion of export volume has significantly increased compared to 2022, with monthly export volume to production data ranging from 7.35% to 14.17%.

Chapter 8 Profit and Inventory of PVC Industry

8.1 Profit Analysis of PVC in 2023

In 2023, there was a significant difference in profits among different regions of polyvinyl chloride and PVC in China, and the profits of the calcium carbide ethylene method also showed different trends. Throughout the year, the profits of the domestic calcium carbide method were basically in a loss state, while the profits of the ethylene method were relatively low, and some months saw significant small profits from individual products. Given the downward trend in crude oil prices and the relatively low VCM prices, the profit performance of ethylene based PVC in 2023 is still acceptable. PVC production enterprises using calcium carbide method have significant losses. Except for integrated enterprises in the northwest region, the loss range in other regions is between -111.44 and -1443.58. Integrated enterprises in the northwest region have less losses due to their cost advantages in electricity and calcium carbide.

8.2 Analysis of PVC inventory in 2023

From the overall inventory trend, the overall inventory in 2023 is at a high level. Since January, warehouse inventory has been continuously accumulating, showing a clear upward trend compared to 2022. On the one hand, the investment of new production capacity has further increased supply pressure, and the increase in production has led to relatively loose supply. On the other hand, weak demand has been constraining the spot market,

The continuous weakening of prices has led to poor performance in the spot market, and high inventory has yet to be normalized for destocking. From the overall inventory trend in 2023, the inventory in the first quarter was actually at a relatively low annual level. In the previous annual review, we also mentioned that there was a different off-season inventory digestion from previous years in January and February. There was a slight decrease in inventory from August to September in the third quarter, and given the slightly improved demand for PVC during the peak season, inventory began to accumulate again from October.

Chapter 9 Major Events in the PVC Industry Chain in 2023

1. Wanhua Chemical (Fujian) MDI will expand to 800000 tons

On February 14, 2023, the People's Government of Fuqing City released the first public announcement of the environmental impact assessment of the Wanhua Fujian MDI technology renovation and expansion project. Construction content and scale: This project will carry out technical renovation and capacity expansion on an existing 400000 ton/year MDI device, adding an additional production capacity of 400000 tons/year to reach a device scale of 800000 tons/year. It will also synchronize the renovation and expansion of related public works, auxiliary facilities, and environmental protection facilities. The remaining public auxiliary facilities and management facilities will rely on the existing facilities in the factory. At present, Wanhua Chemical's MDI production capacity is distributed in four regions, namely Shandong Yantai 1.1 million tons/year, Zhejiang Ningbo 1.2 million tons/year, Fujian Fuqing 400000 tons/year, and Hungary Kasinkbachka 350000 tons/year.


2. Accelerated Progress of Huayi Qinzhou Phase III Project


On March 23, 2023, Huayi Qinzhou Integrated Base is currently the largest industrial project with individual investment in Guangxi. It is also the largest industrial project undertaken by Guangxi in recent years to transfer industries from the eastern region. The first phase of the industrial gas island project has a total investment of 16.2 billion yuan, mainly constructing production facilities with an annual output of 1.8 million tons of methanol, 1.2 million tons of acetic acid, and 200000 tons of ethylene glycol. The project also collaborates with Prax in the United States and Royal Vobao in the Netherlands Top global supporting companies such as Suez in France are collaborating to build professional public works such as large-scale air separation, petrochemical terminal storage, and hazardous waste treatment. It was completed and put into operation in June 2021, and achieved the same year of production, reaching production capacity, and profitability. The total investment for the second phase of the 750000 ton propylene and downstream deep processing project, as well as the chlor alkali project, is about 18.9 billion yuan. The main construction projects include an annual production capacity of 750000 tons of propane dehydrogenation, 300000 tons of butanol, 400000 tons of acrylic acid and esters, 200000 tons of bisphenol A, 300000 tons of caustic soda, and 400000 tons of polyvinyl chloride (PVC) production facilities.

3. The European Commission imposes restrictions on the lead content in PVC

On May 5, 2023, the European Commission issued a regulation restricting lead in PVC in accordance with the EU REACH regulation. The regulation will come into effect within 20 days to support the industry's efforts to replace lead stabilizers in PVC production. In fact, VinylPlus has been actively working to replace lead, and since 2015, the PVC industry in the 27 member states of the European Union has stopped using lead containing stabilizers.

4. Australia launches its first anti-dumping and anti subsidy sunset review investigation into PVC flat cables from China


On June 9, 2023, the Australian Anti Dumping Commission issued Announcement No. 2023/031, stating that in response to an application submitted by Australian domestic company Prysmian Australia Pty Limited on May 10, 2023, the first anti-dumping and anti subsidy sunset review investigation has been launched on PVC Flat Electrical Cables imported from China. The investigation period for this case is from April 1, 2022 to March 31, 2023. The Australian tax number of the product in question is 8544.49.20.41. The Australian Anti Dumping Commission is expected to submit a report to the Australian Minister of Industry and Technology no later than November 11, 2023.

5. Jinchuan Group lays the foundation for the high-end PVDF resin industry chain project

On June 10, 2023, the groundbreaking ceremony of Jinchuan Group's annual production of 20000 tons of high-end PVDF resin industry chain project (Phase I) was held. The annual production of 20000 tons of high-end PVDF resin industry chain project is a chemical industry extension and supplementation project invested and constructed by Jinchuan Group, focusing on the development needs of the new energy and new energy battery chemical industry chain in Jinchang City, relying on the rich local fluorite resources and integrating the existing chemical raw material foundation of the group company. It is closely coordinated and nurtured by the chemical company and Jinni Company, and is a key link in the development of lithium battery materials in the new energy industry.

6. Aluminum oxide landed on the Shanghai Futures Exchange this year

On June 19, 2023, the world's first physically delivered alumina futures will be listed on the Shanghai Futures Exchange.

As the world's largest producer and seller of alumina, China's listed alumina futures have a positive significance in promoting the formation of an open, just, and fair price system in the industry, and improving the price influence of China's alumina market. At the same time, the domestic alumina industry also faces the problem of overcapacity. The listing of alumina futures can not only provide tools for managing risk fluctuations in the industry, but also have an impact on the trading mode of the market. According to the announcement from the previous exchange, the benchmark price for the first batch of listed alumina contracts AO2311, AO2312, AO2401, AO2402, AO2403, AO2404, AO2405, and AO2406 is 2665 yuan/ton.

7. Colombia initiates anti-dumping investigation into suspended polyvinyl chloride related to China

On July 19, 2023, the Colombian Ministry of Trade, Industry and Tourism issued Announcement No. 142 on July 18, 2023 in its official daily newspaper, stating that it had initiated an anti-dumping investigation on suspended polyvinyl chloride (PVC) originating from China and the United States (Spanish: Cloruro de Polivinillo (PVC) tipo suspensi ó n) at the request of Mexico Resinas Colombia S.A.S. The Colombian tax number of the involved product is 3904.10.20.00. The anti-dumping investigation period in this case is from May 10, 2022 to May 9, 2023.

8. Brazil launches anti-dumping investigation on non surgical latex and PVC gloves related to China

On July 31, 2023, the Foreign Trade Secretariat of the Brazilian Ministry of Development, Industry, Trade and Services (Minist é riodo Desenvolvimento, Ind ú stria, Com é rcio e Servi? Os/Secretaria de Com é rcio External) issued Announcement No. 27 of 2023, stating that in response to an application submitted by Brazilian domestic enterprise Targa Medical S.A. on April 27, 2022, the Ministry of Foreign Trade Non surgical latex and PVC gloves from Malaysia and Thailand (Portuguese: luvas para procedementos n? O cir ú rgicos para assist ê ncia à sa ú de, tilizadas em medicina, odontologia e vector á ria) have launched anti-dumping investigations. The product in question is medical, dental, or veterinary gloves made of latex (natural, synthetic, or a mixture of both) or polyvinyl chloride. Related to products under the tax codes 4015.12.00 (latex gloves, previously used code 4015.19.00) and 3926.20.00 (polyvinyl chloride gloves) in the Southern Communist City. The dumping investigation period in this case is from January 2022 to December 2022, and the injury investigation period is from January 2018 to December 2022. The announcement shall take effect from the date of publication.

9. Alkali futures will be listed for trading starting from September 15th

On September 15, 2023, the China Securities Regulatory Commission approved the registration of caustic soda futures on the Zhengzhou Commodity Exchange. The relevant matters regarding the listing of caustic soda futures contracts are hereby announced as follows:


1、 Listing and trading time: caustic soda futures will be listed and traded from September 15, 2023 (Friday). The call auction time on the day of listing is from 8:55-9:00 in the morning, and the trading hours are from 9:00-11:30 and 13:30-15:00. Starting from the evening of September 15th, night trading will be conducted from 21:00 to 23:00.

2、 Listed trading contracts: The first batch of caustic soda futures contracts to be listed for trading are SH2405, SH2406,SH2407, SH2408, and SH2409.

3、 Trading margin standard and limit up/down range: The trading margin standard for caustic soda futures contracts is 9%, and the limit up/down range is ± 7%. According to the relevant provisions of the Zhengzhou Commodity Exchange Futures Trading Risk Control Management Measures, the daily limit for the rise and fall of caustic soda futures contracts is ± 14% of the contract's listing benchmark price.

4、 Alternative delivery product premium: IL-I liquid alkali in accordance with the National Standard of the People's Republic of China for Industrial Sodium Hydroxide (GB/T209-2018), with a premium of 80 yuan/ton (dry ton weight).

10. Guangxi Huayi New Materials Co., Ltd. Phase III Project Launch

On October 20, 2023, the third phase project kickoff meeting of Guangxi Huayi New Materials Co., Ltd. was successfully held. Project overview: Huayi Qinzhou Chemical New Materials Integrated Base is the largest industrial project undertaken by Guangxi in recent years to transfer industries from the east. The total investment of the project is about 90 billion yuan, and the designed output value exceeds 100 billion yuan. It covers four downstream industrial chains of modern coal chemical industry, light hydrocarbon cracking, salt chemical industry, and petrochemical industry, and will be implemented in three phases. The Huayi Phase II 750000 ton propylene and downstream deep processing integration project and chlor alkali project started construction in November 2019 and were completed and put into production in November 2022. The first batch of polyvinyl chloride (PVC) products from the second phase of the project were successfully produced, marking the official completion and commissioning of the Qinzhou base's second phase project, and the beginning of the production phase.

11. Shaanxi Jintai chlor alkali on-site renovation project has been approved for filing

On November 3, 2023, with the approval of the Development, Reform and Science and Technology Bureau of Mizhi County, the on-site renovation project of Shaanxi Jintai Chloroalkali Chemical Co., Ltd. was completed and filed. The preliminary procedures have made milestone progress and are about to enter the substantive promotion stage. Source: Shaanxi Jintai chlor alkali

12. Tianjin Bohai Chemical Project PVC Plant Pile Foundation Project Successfully Starts

On November 7, 2023, the pile foundation engineering of the Phase II chlor alkali integrated unit project of Tianjin Bohai Chemical Industry Development Co., Ltd.'s "Two Chemicals" relocation and renovation project, undertaken by the Chemical Exploration and Design Institute, with an annual capacity of 400000 tons of PVC, started smoothly. The relocation and renovation project of Tianjin Bohai Chemical Industry Development Co., Ltd. aims to build a modern high-end petrochemical industry cluster, with a focus on developing two major product chains: chlor alkali chemical and petrochemical; The second phase of the "Two Modernizations" relocation and renovation project, the chlor alkali integrated plant project, is constructed using its own land resources. A 300000 ton/year caustic soda plant and a 400000 ton/year VCM plant are constructed in the second plot, a comprehensive experimental building is constructed in the third plot, and a 400000 ton/year PVC plant is constructed in the fourth plot. Public auxiliary facilities are constructed in each plot, with a total investment of over 5 billion yuan. The Chemical Exploration and Design Institute has undertaken the construction of the pile foundation project for the Phase II chlor alkali integrated plant project of Tianjin Bohai Chemical Development Co., Ltd.'s "Two Chemicals" relocation and renovation project, with an annual capacity of 400000 tons of PVC. The quantity of prestressed concrete piles for the pile foundation is approximately 110000 linear meters.

13. The groundbreaking ceremony of Shandong Xinfa Hongmeng Plastic Technology was held

On November 28, 2023, the groundbreaking ceremony of Shandong Xinfa Hongmeng Plastic Technology Co., Ltd. was held. Xinfa Hongmeng produces 200000 tons of chlorinated polyethylene, 40000 tons of chlorinated polyvinyl chloride, and 200000 tons of polyaluminum chloride annually. Source: Chiping District Government

14. Saudi Arabia launches anti-dumping measures against PVC textiles related to China

On November 30, 2023, the Saudi Arabian General Administration of Foreign Trade issued Announcement No. AD-23-2, stating that in response to the application of Saudi domestic enterprises, an anti-dumping investigation will be initiated against textiles or fabrics coated with PVC originating from or imported from China and South Korea. The dumping investigation period in this case is from July 1, 2022 to June 30, 2023, and the injury investigation period is from January 1, 2020 to June 30, 2023. The Saudi tax codes for the products involved are 39269061 and 59031000.

15. Pakistan's final anti-dumping ruling on PVC related to China

On December 9, 2023, the Pakistan Customs Commission issued Announcement No. 50/2016/NTC/PVC/SR-I/2022, making the first affirmative final determination of anti-dumping sunset review on suspension grade PVC resin (Polyvinyl Chloride Resin Suspension Grade) originating from or imported from the Chinese Mainland, South Korea, Thailand and Taiwan, China of China, and deciding to continue to impose anti-dumping duties on the products involved in the above countries/regions (see the attached table for the tax rate), The tax rate of exporters/producers in Chinese Mainland is 3.44%~20.47%, South Korea is 4.00% and 14.97%, Thailand is 13.98%, and Taiwan, China is 16.68%. The measures will come into effect on June 8, 2022, and will be valid for three years. This case involves products under Pakistani tax number 3904.1090, which are mainly used for the production of pipes and accessories, garden hoses, shoes, cables, films and sheets, composite materials, packaging, etc