The contradiction between supply and demand of the

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The contradiction between supply and demand in the plastic industry showed a sharp drop in prices. The high inventory of merchants has slowed down the profits of chemical raw materials and chemical products manufacturing. The price is the core reason for the decline in profits. Taking the plastic prices in this industry as an example, after the Spring Festival this year, the prices of some varieties fell by nearly 20% in three months. What is the reason

the price of plastics fell sharply. Traders' inventory was high. In the warehouse of a plastics trading enterprise in Hangzhou, Zhejiang Province, the staff introduced to them that the main varieties of enterprises now include polypropylene, PVC, etc. since the Spring Festival this year, the prices of these products have fallen sharply. Take PVC, which we usually call PVC, for example, the price per ton after the Spring Festival was still about 6700 yuan. By early May, The price per ton fell to 5400 yuan. Although it rebounded briefly in mid May, it began to fall again in the past two days

songshiwei, manager of the Market Research Department of Zhejiang specialty Petrochemical Co., Ltd.: today, if the product quality can reach the same level as the imported brand, or one day higher, PVC has returned to less than 6000 tons. Two days ago, it was 6205 tons, or even 6300 tons

songshiwei said that not only the price has fallen, but also the sales volume has decreased significantly recently. Now the daily sales volume of the enterprise is less than 2000 tons, nearly half of the previous period. High piles of plastic raw materials can be seen in many warehouses, and many of them are temporarily stored in the corridor outside the warehouse. At present, the warehouse has stored 35000 tons of plastic raw materials, an increase of more than 4000 tons year-on-year

songshiwei, manager of Market Research Department of Zhejiang specialty Petrochemical Co., Ltd.: Overall, the inventory is still on the high side. Compared with the downstream demand, the enterprise is trying to reduce the inventory, and then fast in and fast out

On this basis

it is understood that the sharp drop in plastic prices is mainly due to the high operating rate and increased output of upstream raw material manufacturers. Although prices fell sharply, the operating rate of enterprises remained high. Take polypropylene and polyethylene for example. The price of raw oil for production has fallen recently, so the enterprise still has certain profits. At present, there is almost no profit in PVC sales, but one ton of caustic soda will be produced when one ton of PVC is produced. The high profit of caustic soda also enables the enterprise to maintain a high start-up rate

wangsiling, Deputy Sales Manager of Ningxia yinglite Chemical Co., Ltd.: at present, the profit of caustic soda is about 1700 yuan per ton. At present, the profit of PVC should be the same as the cost, with zero profit. The current profit is supported by caustic soda

the sales volume of downstream enterprises shrank and the inventory of raw materials was reduced.

in the interview, it was learned that although the price fell, the operating rate of upstream raw material production enterprises was still very high because of profits, but the downstream demand shrank and the sales volume fell. Now in the plastic industry, the contradiction between supply and demand has emerged

in a PVC pipe production enterprise in Hangzhou, Zhejiang Province, the person in charge told that the production capacity of the enterprise was about 40000 tons per year. The current operating rate is less than 50%. At present, the monthly sales volume is about 1600 tons. Compared with the same period of the previous two years, the monthly sales volume has decreased by sevenoreight hundred tons

hongguorong, general manager of Hangzhou Shunda Plastic Co., Ltd.: after the state's regulation and control of the real estate industry, we will certainly be affected. This situation does not mean that sales of any of our enterprises are declining

it is understood that downstream of the PVC industrial chain, pipe and profile products account for more than 61%, which is most affected by the real estate industry. Due to the slowdown in the growth of real estate investment and the decline of upstream raw material prices, enterprises have reduced their raw material inventories to the lowest

hongguorong, general manager of Hangzhou Shunda Plastic Co., Ltd.: if the raw material inventory is basically about 100 tons. A hundred tons is a few days' production, about threeorfour days. At present, the profit margin is very small. If you operate improperly, raw materials may eat up my profits

however, insiders say that at present, the sales of most plastic products are declining. In an enterprise producing plastic cardboard, the production workshop has been shut down. According to the person in charge, it used to take more than 25 days to start work in a month, but now it can take 15 days to start work in a month

wangzhengqin, general manager of Hangzhou Xiaoshan Rongxin Plastic Co., Ltd.: factories like ours are mainly based on orders. In the past two years, there were more than 8000 tons. Now, there are about 5000 tons a year

data show that from 2007 to 2016, the output of plastic products in China increased from more than 33 million tons to more than 77 million tons. However, at present, the contradiction between supply and demand in the plastic products market is prominent. Some traditional plastic products are in surplus, and the market demand is gradually shrinking

cuikezeng, deputy general manager of strategy of zhuochuang information group: at present, the plastic industry is in a structural surplus, and even some engineering plastics are in surplus. In addition, polypropylene is basically a little surplus

plastic prices fluctuate violently. Enterprises actively participate in futures hedging. Insiders tell us that the current downward wave of plastic prices is a huge fluctuation in the short term, and few of its dielectric properties rank first among plastics; Enterprises can completely avoid losses in such a market. Therefore, how to make good use of financial instruments to avoid risks deserves the attention of enterprises

hanxinwei, the person in charge of a large plastic trading enterprise in Hangzhou, told us that the spot price of plastic varieties in the recent year was a roller coaster market. Taking PVC as an example, the price per ton was 5200 yuan at the end of September last year. By January this year, it had risen to more than 7000 yuan, and then fell sharply. The current price is about 5800 yuan. In the face of such huge fluctuations in a short period of time, the prices of raw materials purchased by enterprises and the market prices are prone to inversion. His company once had to pay more than 100 yuan for every ton of products sold. Later, through the futures market, hedging was used to avoid losses

hanxinwei, chairman of Zhejiang tomorrow Holding Group Co., Ltd.: we can make up for such a loss through such an arrangement pre operation in the industry. I can't make much money, but at least I don't lose money in this round of decline

Chen Wei, director of the industrial products business department of Dalian Commodity Exchange: when the annual profit of an enterprise reaches sevenoreight percent, the price fluctuation of this product or raw material often reaches 20% to 30%, so the risk caused by price change can not be avoided by the enterprise in terms of the spot market alone

in fact, in the plastic industry, more and more enterprises like hanxinwei rely on futures to avoid risks. In 2016, nearly 8000 corporate customers participated in plastic futures trading, and their positions accounted for more than 30% of the overall market. Since 2007, the average annual growth rate of corporate customers has been 48%

Chen Wei, director of industrial products business department of Dalian Commodity Exchange: if there is a futures market, this risk can be avoided by hedging. At this time, enterprises can concentrate on their management and market

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