China PVC market pick up as local supply curtails following another explosion
China PVC market pick up as local supply curtails following another explosion
PVC (A) k67-68 SPVC k67-68
A series of chemical plant explosion has prompted the Chinese government to perform stringent safety inspection at a number of plants in the Northern China area since March. As a result, many companies, including those in the carbide business, have lowered operation rate.
An explosion at Xinjiang Yihua Chemical Group earlier this month has disrupted the supply for carbide feed, forcing carbide-based PVC producers to maintain a firm stance on the prices to protect profit margins.
To make the matter worse, early morning 24 April 2019, another explosion occurred at Inner Mongolia Yidong Dongxing Chemical Co Ltd, causing the company to shut down the 300,000-tons/year carbide-based PVC plant indefinitely.
It is reported that most local suppliers immediately withdrew the spot offers after the incident with the expectation that more stringent safety inspection is to carry out, which might curfew the supply further.
A number of Chinese buyers are looking for Southeast Asian cargoes to avoid antidumping duties and it is reported that deals for Thailand cargoes have reached $870/ton CFR China this week.
Meanwhile, a Taiwanese producer lifted offers by $15-30/ton from last week, sending the latest price to $840/ton CFR China term. A source added, “This has assured the market that prices are rebounding from the cyclical bottom. We expect more overseas sellers to introduce increases in the coming days.”
Supply woe is expected to worsen in the near term amid heavy maintenance shutdown schedule among major plants in China. CommoPlast has combined and reported the details of these shutdowns in the following table:
|
Plant Name |
Type |
Capacity |
Details |
|
Qinghai Salt Lake |
Carbide |
200,000 |
Unexpected shutdown since 13 Feb |
|
Hebei Shenghua |
Carbide |
260,000 |
Unexpected shutdown since 28 Nov 2018 |
|
Wuhu Ronghui |
Carbide |
50,000 |
12 March to H2 April |
|
Yunnan Nan Lin |
Carbide |
330,000 |
1 April to unknown |
|
Suzhou Huasu |
Ethylene |
130,000 |
8 April to 20 April |
|
Hubei Yihua |
Carbide |
250,000 |
12 April, 7-10 days |
|
Xiyang Chemical |
Carbide |
100,000 |
12 April to unknown |
|
Wuhai Chemical |
Carbide |
300,000 |
15 April, 10 days |
|
Jiyuan Fangsheng |
Carbide |
50,000 |
21 April, 4-5 days |
|
Xinjiang Yili Nangang |
Carbide |
120,000 |
22 April, 15 days |
|
Inner Mongolia Yidong Chemical |
Carbide |
300,000 |
24 April explosion |
|
Qinghai Yihua |
Carbide |
300,000 |
April, 5 days |
|
Xinjiang Tianye |
Carbide |
1,300,000 |
Mid of May |
|
Xinjiang Zhongtai (Midong) |
Carbide |
800,000 |
Mid of May, 7 days |
|
Shanxi Yushe Chemical |
Carbide |
300,000 |
15 May, 3 days |
|
Shaanxi Jintai |
Carbide |
300,000 |
15 May, 15-20 days |
|
Ordos |
Carbide |
400,000 |
Mid of May |
|
Shanxi Ruiheng (Phase I) |
Carbide |
200,000 |
Mid of May |
|
Shaanxi Beiyuan |
Carbide |
1,100,000 |
May |
|
Inner Mongolia Dongxing |
Carbide |
360,000 |
May |
|
Henan Shenma |
Carbide |
300,000 |
May |
|
Sichuan Jinlu |
Carbide |
240,000 |
May |
|
Lu Tai Chemical |
Carbide |
360,000 |
end of May |
|
Yangmei Hengtong |
Ethylene |
300,000 |
May, 20 days |
|
Dezhou Shihua |
Carbide |
400,000 |
H2 May |
|
Jilantai |
Carbide |
400,000 |
end of June |
|
Heilongjiang Yuhua |
Carbide |
300,000 |
end of June |
|
Shanxi Yangmei Hengtong |
Carbide |
300,000 |
May, 20 days |
|
Inner Mongolia Yili Chemical |
Carbide |
500,000 |
May, 7-10 days |
|
Yangmei Xiyang Chemical |
Carbide |
100,000 |
May |
|
Zhonggu Mining |
Carbide |
300,000 |
May |
|
Tianjin Dagu |
Ethylene |
800,000 |
May, 3 weeks |