There are certain differences in the gross profit changes of PVC enterprises due to the fluctuation of different raw materials in PVC resin

[Introduction] Recently, the PVC powder market has been fluctuating, with prices of different raw materials fluctuating, resulting in certain differences in the gross profit of PVC resins produced by different processes. The loss of PVC powder produced by calcium carbide method has increased, while the gross profit of PVC resin enterprises that purchase VCM has decreased, while PVC powder enterprises that purchase ethylene have slightly reduced their losses. As the price of caustic soda drops, the integrated gross profit of caustic soda and PVC powder continues to decline.

Recently, the PVC resin market has been mainly volatile, with the main futures contracts fluctuating between 5650 and 5900, and spot prices being weak. The shipping prices of enterprises follow market fluctuations, and the gross profit also changes accordingly. In terms of gross profit, in the past half month, PVC powder enterprises using carbide method have seen an increase in losses, while PVC powder enterprises purchasing ethylene have slightly reduced their losses. The gross profit of integrated VCM and chlor alkali PVC has decreased. The specific situation is as follows:

Increased losses for PVC resin enterprises using calcium carbide method

Recently, PVC powder companies using calcium carbide method have seen an increase in losses. Taking PVC companies purchasing calcium carbide from outside Shandong as an example, as of December 14th, their gross profit was -664.9 yuan/ton, an increase of 81.6 yuan/ton in losses compared to the end of November.

The main factors affecting the gross profit of PVC produced by calcium carbide method are, on the one hand, the fluctuation and increase in calcium carbide prices, leading to an increase in PVC costs. The increase in calcium carbide prices is mainly due to local power restrictions in Inner Mongolia and the impact of rainy and snowy weather on transportation, resulting in a decrease in PVC enterprise calcium carbide inventory.

Another factor that affects the gross profit of PVC powder produced by calcium carbide method is the fluctuation in the price range of PVC powder, with little price fluctuation. The fundamentals of PVC resin are relatively weak, with high inventory and poor export performance, but the sales pressure on enterprises is not significant. Macro cautious and optimistic, with poor economic data performance.

Reduced gross profit of PVC enterprises importing VCM

Recently, the gross profit of PVC powder enterprises importing VCM has decreased, with a gross profit of 129 yuan/ton as of December 14th, a decrease of 277 yuan/ton compared to the end of November.

The main factors affecting the gross profit of PVC powder enterprises importing VCM are, on the one hand, stable supply of imported VCM goods, slight fluctuations in delivery prices, and slight fluctuations in costs. On the other hand, the atmosphere of PVC resin is calm, and the price of ethylene method is gradually decreasing. So the decrease in gross profit mainly comes from the decrease in PVC factory price.

PVC companies that purchase ethylene slightly reduce losses

PVC companies that purchase ethylene from outside have gradually reduced their losses, with a gross profit of -134 yuan/ton as of December 14th, a decrease of 90 yuan/ton from the end of November. The main factors contributing to the change in gross profit of ethylene based PVC enterprises are a slight drop in the price of raw material ethylene, resulting in a decrease in costs. On the other hand, PVC prices have fluctuated and fallen, leading to a decline in factory prices.

The gross profit of PVC integrated enterprises using caustic soda/calcium carbide method has decreased

The gross profit of PVC produced by caustic soda/calcium carbide method in Shandong region has gradually decreased. On the one hand, the loss of PVC powder produced by calcium carbide method has increased, and on the other hand, the profit of caustic soda has continued to decline. As of December 14th, the gross profit of Shandong caustic soda/calcium carbide method PVC integration was 142 yuan/ton, a decrease of 217 yuan/ton from the end of November.

Differential changes in gross profit of PVC enterprises in the short term

The recent changes in gross profit mainly come from changes in the raw material side, and from the perspective of raw materials, the limited electricity and transportation of calcium carbide will continue for a short time in the future, and the price of calcium carbide may remain stable and slightly increase. The prices of ethylene and VCM may slightly decrease in the short term. PVC will continue to be affected by weak fundamentals and strong macro expectations, with prices mainly fluctuating in the range. Therefore, it is expected that the gross profit of PVC resin will still show differential changes in the short term.