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Business news on February 18

Affected by the novel coronavirus pneumonia, the late start of the operation has resulted in more PVC inventory. It is expected that the accumulation of inventory will be more frequent in the downstream of the company. In the case of high inventory, the upstream of chemicals has started to reduce the load since last week, which is no exception for PVC enterprises. However, the load reduction of PVC last week is more passive, mainly due to the transportation of raw material end calcium carbide and the tight shortage of calcium carbide itself. At the end of the week, the transportation and production of calcium carbide have recovered. Under this condition, the start-up of large and medium-sized PVC enterprises will remain high.

PVC industry is one of the few enterprises with good profits in the chemical industry, so the load drop of PVC enterprises is far lower than that of PE / PP / PTA and other chemical enterprises. People in the industry mostly discuss when the capital pressure of PVC production enterprises can force the enterprises to continue to reduce the negative load. When demand recovers slowly, inventory is high, and the mentality turns pessimistic, the time rate of load reduction is probably next weekend.

The labor-intensive downstream construction of the majority of small and medium-sized enterprises is difficult to recover quickly: most of the downstream of PVC are small and medium-sized enterprises. It is stipulated that when the enterprises can start construction on February 10, the external personnel should be isolated for 14 days, and the small enterprises are unable to meet the isolation needs in terms of human and material resources, which largely curbs the starting power of small product processing enterprises.

Enterprises without orders started more slowly before: large and medium-sized enterprises had post saving orders before, while small enterprises had short order cycle, few orders received before, stagnant demand after, and few new orders.

PVC demand elasticity is small, and low price is difficult to promote high demand: for PE / PP, a commodity close to daily consumer goods, low price can increase part of the demand, but the downstream of PVC is mainly real estate. In addition to the fact that real estate starts later than the demand of mechanized product enterprises, the main reason is that the demand is rigid and the demand elasticity is small.