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Due to the sharp decline in the sales price of products, the operating pressure of domestic plastics production enterprises has become increasingly heavy, and many companies have reported that they have done relatively hard in the first half of this year. In particular, the PVC industry in China, where the market improved last year, faced more severe market pressure. As far as the domestic PVC production cost is concerned, the current production cost of the calcium carbide process route is approximately 4,800 yuan; the production cost of the ethylene oxide chlorine line is between 3,900 and 4,000 yuan; the EDC/VCM process route The company's production cost is between 5100 and 5300 yuan, but at present, the market price of PVC in China is close to or even lower than the production cost. Due to the price upside down, there is a large area loss in the domestic PVC manufacturing companies, and some use of calcium carbide process The PVC production companies on the route have ceased production.
According to analysis, the domestic plastics market has been in a slump since the beginning of this year. There are mainly two important reasons. The first is that the domestic plastics market is light. Although the price is low, dealers still dare not receive large quantities of goods and are afraid to be caught in sales. Pressure is very high; inventory is slow to digest. Coupled with China's accession to the WTO at the end of the year, the tariffs on plastic raw materials will be greatly reduced after the accession to the WTO, and the purchasing psychology of purchasing currency will increase. Even if the current price is already at a very low price, many users are still waiting.
The second is that the global plastics market is also very sluggish. Due to the economic downturn in the United States, the United States, which was originally a major importer of the Asian plastics industry, not only reduced its import volume this year, but also some plastic raw materials are sold to the Asian market, which makes the plastics market particularly Southeast Asia. With more fierce market competition, plastic manufacturers have adopted price-cutting competition to win customers, but they have not yet brought positive impact on the market. For example, Fuju, one of Taiwan's major polypropylene manufacturers, plans to sell 340,000 tons of polypropylene this year. In the first half of the year, the sales rate is about 44%, and sales volume is about 150,000 tons. At the end of June, the export prices of polypropylene in Asia fell to about US$520-540/ton, about RMB6,640-2,250/ton for synthetic products, which was lower than the ex-factory price of some domestic polypropylene companies. The low-cost imported sources flooded the domestic market. This will have a great impact on the domestic polypropylene market.
Market Inspiration: This year, there have been some new developments in the domestic plastics market, which are worthy of attention by domestic plastics companies: Recently, Sinopec announced that it would shut down some production facilities. Among them: Jinling Petrochemical's 10,000-ton/year PS plant, Baling Petrochemical 0.8 million tons/year styrene plant, and this year, Yanshan Petrochemical Company No. 1 polypropylene plant is no longer driving. However, this shutdown does not mean blindly demarcation, but based on the economic and technical indicators of the device, the operating costs and whether it is competitive in the market. The relevant person uses polypropylene as an example for analysis, such as the Yanshan Petrochemical Company that is currently closing down. The propylene production capacity reached 115,000 tons. However, a batch of 70,000 tons of polypropylene units such as Luoyang Petrochemical Company's 40,000 tons of polypropylene and Jiujiang Petrochemical Company had a production scale much smaller than that of Yanshan Petrochemical Company. However, due to good economic benefits, the market prospects Well, it is not shut down, which indicates that the pace of product mix adjustment in the domestic plastics industry is accelerating and the industrial structure and resource allocation will be more rationalized.
The new management methods are gradually deepening in the domestic plastics industry. For example, in product procurement, the original is basically the use of annual orders or on-demand purchase, but this situation is quietly changing, following the success of Qilu Petrochemical Company last year. After the implementation of the tender procurement of production raw materials, this year the three largest plastics production giants Qilu Petrochemical Company, Yanshan Petrochemical Company and Maoming Petrochemical Company jointly applied for tendered procurement of raw materials such as plastic antioxidants. Joint procurement resulted in a substantial reduction in supply prices. With feedback from enterprises, the cost reduction rate has exceeded the company's expectations. Qilu Petrochemical Company reduced procurement costs by 3.45 million yuan. It is believed that more domestic plastics enterprises will adopt tender procurement methods for the production of raw materials this year, and the continuous popularization of Internet technology applications and the increasingly active trading activities of domestic and international chemical product online trading centers will also provide better bidding and procurement for enterprises. Implementation environment.
In the first half of this year, the price war between domestic plastics manufacturers has risen again, but the price war has failed to give the domestic plastics market a truly effective start. For companies, in the short term, they can bring some effects and stimulate distributors to purchase goods, but only Can be short-term behavior. The operating strategy of Yanshan Petrochemical Company should attract attention. In the early days of the plastics market, Yanshan Petrochemical Company was one of the less influential. It was learned that one of the reasons was to pay attention to the blank point of market supply. For example, polypropylene of Yanshan Petrochemical Company is currently mainly used for production of special materials, and PP special materials are required for customers. The order is reproduced first, so it is basically not affected.
China is expected to join the WTO this year, but at present there is a misunderstanding on understanding. Many people think that the tariffs on domestic plastic raw materials will be greatly reduced after China's accession to the WTO. This is not necessarily the case. The reduction of tariffs is a gradual process, with an average of nearly 1 The %/year rate is adjusted gently. For example, the tariff for polystyrene will gradually decrease to 8% by 2008, and the import tariff for PVC will drop to 6.5%. This requires plastics companies to do promotional work to domestic customers and guide consumption.
Analysis and Enlightenment of Domestic Plastic Market
Since the beginning of this year, the domestic plastics market has been declining on a wave-by-wave basis and the market is bleak. This contrasted sharply with the 2000 market over the same period. Despite the short-term rebound in the domestic plastics market in April, it was soon repressed. After May, although the major domestic resin manufacturers began to enter the annual inspections in succession and the domestic market supply decreased, the market responded. Plain, after the end of June, the sales in the domestic plastics market are even lighter. It is reported that several major plastics manufacturers in China have high product inventories.