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"We have our own raw material advantage of the company, PVC factory prices are still not much profit, other companies can imagine." Recently, Shandong Haihua Propaganda Minister Zhang Qinye said that due to rising raw materials and the real estate market continues to slump, PVC companies have large losses The phenomenon.
Regardless of whether the calcium carbide process PVC or the ethylene process PVC enterprises, in 2008 were adversely affected by the increase or fluctuation of raw material prices. China chlor-alkali network statistics show that 65 chlor-alkali enterprises with large PVC production capacity in China have only 18 normal operating rates and are concentrated in the northwestern region. There are 24 chlor-alkali enterprises with operating rates of less than 50%, and they are basically maintained at around 30%. The remaining 23 companies have entered the phase of parking or equipment maintenance, with the northeastern region accounting for a major portion.
At the same time, 30% of China’s annual PVC production is used in the real estate industry. However, due to the current downturn in the housing market, the demand for PVC has been very difficult to recover. Zhang Qinye said that although Shandong Haihua has its own advantages in the production of raw salt and calcium carbide production bases, it suffers from the continuing downturn in the downstream industries. Currently, the ex-factory price of PVC is still not much profit. He believes that the days of raw materials depending on the purchase of PVC production companies are even more sad, some companies have shut down some of the production lines, relying on the old to support. The production cost of most domestic PVC production companies has been very close to the sales price, and some companies have even experienced price inversion.
Global economic downturn The majority of domestic PVC companies have lost their overall price losses.
At present, due to the rapid decline of the global economy and the slump in the domestic real estate market, the downstream demand for PVC has shrunk dramatically, coupled with the serious overcapacity of domestic PVC, the majority of PVC production enterprises have suffered a total loss.