The real reason for the new high in PVC resin prices
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Policies aimed at energy conservation and emission reduction have led to the shutdown of calcium carbide manufacturers, pushing the price of PVC resin to a new high of 9,300. But without calcium carbide, production is not possible; and even if it is produced, it’s not profitable.
The analysis is correct! Calcium carbide manufacturers suspend production
Since **the targets for energy conservation and emission reduction have not been met, various provinces and cities are now enforcing strict measures in this regard, including power cuts, which has led to the shutdown of many calcium carbide factories as well as small chemical plants. As a result, the price of calcium carbide dropped while the price of PVC rose.
Here, not only is calcium carbide hard to obtain, but there are also restrictions on power use due to efforts to save energy and reduce emissions; production capacities have been reduced to a minimum. How can costs not rise in such circumstances? In short, it means losing money; if it weren’t for the fear of cold weather, it would have been stopped long ago as it’s completely useless once stopped
It’s not easy for small-scale manufacturers to operate in the PVC industry; the trend is toward large-scale production and a circular economy. Companies with sufficient resources build their own power plants, calcium carbide factories, cement plants, and fly ash brick factories. They also have well-developed systems for desulfurization using calcium carbide slag and for the comprehensive utilization of waste materials. Such companies can not only keep operating normally but also benefit from tax reductions, which essentially gives them a monopoly position. When small factories shut down, larger companies can raise prices at will; those that cannot keep up end up going bankrupt.
How much is calcium carbide per ton these days? The monomer method might still have low profits!
Reply to 7# ilydxr: 4,700 yuan per ton
The key is whether the calcium carbide that stopped production in January 2011 can be restarted. If it cannot be launched, PVC prices are likely to keep rising. Currently, the non-PVC applications for calcium carbide in China are also developing rapidly, and they are competing with PVC for access to calcium carbide: lol
Things are much better here; I have my own power plant in the workshop to generate electricity, my own calcium carbide factory to produce calcium carbide, as well as my own caustic soda and PVC production facilities.
Reply to 8# Adu: That’s nonsense; the ones we use cost over 10,000