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EDC (dichloroethane): supply disturbance, market waves rise again

Views: 0     Author: Site Editor     Publish Time: 2022-04-04      Origin: Site

In March, the domestic dichloroethane market was mainly sorted out. After the monthly sales plan of the main production enterprises was reached, the shipping pressure was small, and the stable shipping was mainly in the later part of the month. However, with the arrival of domestic trade ships in Hong Kong, the supply of goods on the site increased, the offer of main factories was loose, the downstream users were cautious about entering the market, and the market trading atmosphere was weak.

Overseas, trading in the Asian EDC market is light because few sellers have spot supply. The purchasing sentiment in Northeast Asia has declined, but the sales sentiment has basically not changed. Some manufacturers say that the price in China's domestic market is stable and lack of sales urgency. Some market participants say it may be more profitable to sell outside Asia where demand and prices are better. From the perspective of the main downstream vcm-pvc, the VCM market supply is still tight. As most manufacturers have sold out in April, the market supply continues to be tight. Market sources said that due to the reduction of spot sales quota in April, the Northeast Asia and Southeast Asia markets are expected to improve in May. In terms of PVC, the demand for PVC in China's domestic market is expected to be relatively weak due to the impact of the epidemic, poor logistics and transportation, insufficient support from the housing and construction industries, and the increase in supply caused by export interruption.

In the future, at the supply level, there has been a negative impact due to the inflow of domestic trade ships into the main markets, and the main manufacturers have offered to give up profits; At the demand level, PVC and other downstream demand are affected by domestic epidemic factors, and the follow-up is weak. In addition, the logistics and transportation control in East China is relatively strict, and the trading rhythm of upstream and downstream markets has slowed down. The new capacity of Jiangsu Ruiheng EDC may be stored and started in April. We need to continue to pay attention to the market changes caused by the change of market supply and demand structure in April.

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