Recently, the domestic CPE (chlorinated polyethylene) market under the comprehensive influence of multiple factors, the overall stability, trading atmosphere is slightly dull. Although the supply of raw materials is still tight, but with the end of the downstream consumer season, the CPE market outlook is not optimistic, the high consolidation trend will continue.
In September, the CPE raw material market continued to be out of stock. Most manufacturers' raw material procurement was more difficult, and some manufacturers chose to suspend production. At the beginning of September, the demand of the downstream market of CPE was acceptable, and the manufacturers shipped smoothly. Most manufacturers still maintained a high operating rate under huge cost pressure. In the second half of September, the downstream market of CPE began to show a downturn, and domestic manufacturers began to reduce the operating rate. Most manufacturers have a certain inventory. Before the National Day holiday, the phenomenon of downstream stockpiling expected by the manufacturers did not appear. As the atmosphere of the domestic plastics market remained cold, although the upstream raw materials were relatively tight, the manufacturers did not intend to adjust prices. At present, the 135A price is 12,000 to 13800 yuan/ton, and the 135B price is 13,000 to 14,000 yuan/ton.
In September, the domestic supply and marketing of the CPE market was mainly due to the following factors:
First of all, China's CPE industry chain is still lacking. At present, China's CPE production relies too heavily on imported raw materials. This problem has once again been highlighted during the maintenance and repair of the CPE-dedicated HDPE production line in Liaohua. When the supply of domestic goods is insufficient, manufacturers with stronger domestic strength are still able to reduce their profit margins and continue to use the higher-priced imported raw materials to continue production. However, the majority of small-scale enterprises have to reduce the operating rate or even stop production.
Second, the price of raw materials rose. The continuous rise in global crude oil prices has further aggravated the cost burden of domestic CPE producers. In September, the price of WTI crude oil in New York topped the $83/barrel and continued to rise. Each ton of CPE produced consumes about 0.65 tons of HDPE special material. HDPE occupies most of the cost of CPE. The rising price of international crude oil has caused the price of HDPE to rise, while the supply of raw materials in September has been tight. This has given rise to market speculation. This year, the price of HDPE special materials has risen sharply from that of previous years, and the price of special materials per ton of HDPE has increased by nearly one thousand yuan. Domestic CPE producers have begun to face severe cost tests and the sales pressure is huge.
Again, the market performed abnormally. This year, the domestic CPE downstream market performed abnormally. The sales of PVC products market in summer and autumn was less than in previous years. The plastic modifier market as the main consumer of CPE products was also affected by the abnormal performance of PVC products market this year. Did not arrive.
In addition, China's CPE market also has its own particularities. China has the largest CPE producer in the world, Weifang Yaxing Chemical. After a series of reforms and expansions, Shandong Weifang Yaxing Chemical has an annual production capacity of 110,000 tons of various types of CPE products, and its products account for nearly 60% of the domestic market. And has 40% of the global market share. At the same time, Shandong Province also has a large number of CPE producers whose production capacity exceeds 10,000 tons. Therefore, domestic production capacity is mainly concentrated in Shandong, and the CPE market is greatly affected by the region. Many small-scale production companies basically follow the market-following model of price operation. Individual manufacturers in some localities have made slight adjustments, but the overall market has not been affected and is mainly based on stability.
It is expected that the demand for the downstream market in the early part of October will remain flat. At the same time, the tight supply of domestic CPE raw materials will still not be effectively alleviated. In late October, Liaohua HDPE production line will resume production. As the consumption season of PVC products will be over, the domestic CPE market will face greater sales pressure at that time, and the CPE market outlook will show a steady downward trend.
In September, the CPE raw material market continued to be out of stock. Most manufacturers' raw material procurement was more difficult, and some manufacturers chose to suspend production. At the beginning of September, the demand of the downstream market of CPE was acceptable, and the manufacturers shipped smoothly. Most manufacturers still maintained a high operating rate under huge cost pressure. In the second half of September, the downstream market of CPE began to show a downturn, and domestic manufacturers began to reduce the operating rate. Most manufacturers have a certain inventory. Before the National Day holiday, the phenomenon of downstream stockpiling expected by the manufacturers did not appear. As the atmosphere of the domestic plastics market remained cold, although the upstream raw materials were relatively tight, the manufacturers did not intend to adjust prices. At present, the 135A price is 12,000 to 13800 yuan/ton, and the 135B price is 13,000 to 14,000 yuan/ton.
In September, the domestic supply and marketing of the CPE market was mainly due to the following factors:
First of all, China's CPE industry chain is still lacking. At present, China's CPE production relies too heavily on imported raw materials. This problem has once again been highlighted during the maintenance and repair of the CPE-dedicated HDPE production line in Liaohua. When the supply of domestic goods is insufficient, manufacturers with stronger domestic strength are still able to reduce their profit margins and continue to use the higher-priced imported raw materials to continue production. However, the majority of small-scale enterprises have to reduce the operating rate or even stop production.
Second, the price of raw materials rose. The continuous rise in global crude oil prices has further aggravated the cost burden of domestic CPE producers. In September, the price of WTI crude oil in New York topped the $83/barrel and continued to rise. Each ton of CPE produced consumes about 0.65 tons of HDPE special material. HDPE occupies most of the cost of CPE. The rising price of international crude oil has caused the price of HDPE to rise, while the supply of raw materials in September has been tight. This has given rise to market speculation. This year, the price of HDPE special materials has risen sharply from that of previous years, and the price of special materials per ton of HDPE has increased by nearly one thousand yuan. Domestic CPE producers have begun to face severe cost tests and the sales pressure is huge.
Again, the market performed abnormally. This year, the domestic CPE downstream market performed abnormally. The sales of PVC products market in summer and autumn was less than in previous years. The plastic modifier market as the main consumer of CPE products was also affected by the abnormal performance of PVC products market this year. Did not arrive.
In addition, China's CPE market also has its own particularities. China has the largest CPE producer in the world, Weifang Yaxing Chemical. After a series of reforms and expansions, Shandong Weifang Yaxing Chemical has an annual production capacity of 110,000 tons of various types of CPE products, and its products account for nearly 60% of the domestic market. And has 40% of the global market share. At the same time, Shandong Province also has a large number of CPE producers whose production capacity exceeds 10,000 tons. Therefore, domestic production capacity is mainly concentrated in Shandong, and the CPE market is greatly affected by the region. Many small-scale production companies basically follow the market-following model of price operation. Individual manufacturers in some localities have made slight adjustments, but the overall market has not been affected and is mainly based on stability.
It is expected that the demand for the downstream market in the early part of October will remain flat. At the same time, the tight supply of domestic CPE raw materials will still not be effectively alleviated. In late October, Liaohua HDPE production line will resume production. As the consumption season of PVC products will be over, the domestic CPE market will face greater sales pressure at that time, and the CPE market outlook will show a steady downward trend.