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Crash! A variety of plastic raw materials fell for seven consecutive days

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The low operating rate in many chemical industries is mainly due to the weakness of demand groups and the high price hindering demand. At present, it is difficult to increase demand due to drought in the north and flooding in the south.

 

In the case of reduced orders, chemical enterprises can only reduce the operating rate and take the initiative to slow down the normal production, transportation, sales and other processes in order to avoid inventory accumulation or solve the existing inventory pressure.

 

In addition to the lower operating rate, the plastic chemical industry has also made the ultimate self-help measure, price reduction.

 

 According to incomplete statistics, the prices of some chemicals fell for seven consecutive days, with the highest price drop of more than 6000 yuan / ton, and the whole chemical market suddenly showed a “collapse” trend.

 

At present, the prices of raw materials in the plastic industry chain and related derivative industry chains basically show a downward trend.

 

Calcium carbide PVC is 1855 yuan / ton lower than last year, ethylene PVC is 1952 yuan / ton lower than last year, ordinary modified benzene is 1113 yuan / ton lower than last year, high-end modified benzene is 1439 yuan / ton lower than last year, ABS (0215a) is 5477 yuan / ton lower than last year, and ABS (hi-121h) is 4900 yuan / ton lower than last year.

 

It is not difficult to see that the current operating rate of dozens of plastic chemicals is low, which can be called active “lying flat”.

 

If it is the “buddha-like ” of the enterprise, we will not believe it if we don’t care about profits and losses.

 

The fundamental reason is the joint pressure of upstream and downstream, especially the shortage of orders in the downstream.

 

Many plastic enterprises said that they had no orders anyway, and no one bought them after the price was reduced. On the contrary, they would lock the price of their products at a low point, affecting the progress of future price increases.

 

Moreover, the full opening of the production line will bring more pressure on the increase of the cost of water, electricity, gas, etc. and the wages of personnel. It is better to stop and slow down first, and it is possible to reduce the load and production to 50%.

Judging from the current market situation, the national market as a whole is in a downward trend.

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Many downstream industries such as automobile, real estate, furniture and household appliances are in a downward trend in sales. Force majeure such as the epidemic can not be quickly eased in the near future. The “production reduction” plan of plastic and chemical enterprises in the second half of the year will not be a joke.

 

However, no one can speculate whether it will stop production after the reduction of production and whether it will be a complete shutdown after the reduction of burden.

 

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Post time: 07-06-2022

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