Last week, PVC rose again after a short period of decline, closing at 6,559 yuan/ton on Friday, a weekly increase of 5.57%, and the short-term price remained low and volatile. In the news, the external Fed’s interest rate hike stance is still relatively hawkish, but the relevant domestic departments have recently introduced a number of policies to bail out real estate, and the promotion of delivery guarantees has improved expectations for real estate completion. At the same time, the domestic hot and off-season is coming to an end, boosting market sentiment. At present, there is a deviation between the macro-level and fundamental trading logic. The Fed’s inflation crisis has not been lifted. A series of important U.S. economic data released earlier were generally better than expected. Currency contraction and interest rate hike expectations did not change much. Macroeconomic pressure did not change, while fundamental support provided marginal improvement. feature.This week, PVC production increased slightly. As the high temperature eases, there is currently no obvious negative impact on the supply side, and the supply is expected to return to growth. Due to the repeated interruption of the process of consumption recovery in many regions and the weakening of external demand under the pressure of recession, the current consumption has not The performance exceeded expectations, so that the recovery of production may be greater than the effect of the small increase in demand. Although the traditional peak season is gradually entering, the downstream construction is slowly increasing, but the short-term improvement is not enough to bring about sufficient inventory optimization, high inventory status Lower price elasticity is less likely to continue rising. However, the current price is still in the pattern of low valuation and profit, which provides a sufficient margin of safety for the disk. With the improvement of domestic weather conditions, the terminal demand has shown a trend of improving month-on-month, which also brings certain support to the market, and the market outlook " The peak season of "Golden Nine Silver Ten" is still driven by demand growth, which makes the disk appear relatively defensive. In general, the phased improvement in demand entering the peak season has increased the strength of fundamental support and pushed the market price focus upward, but the intensity of demand has not yet covered the increase in the supply side, and the constraints of high inventory still exist. The interest rate meeting is approaching, the macroeconomic aspect will not change the pressure pattern, and further improvement in the demand side is needed to provide a driving force for the rebound.

Last week, PVC rose again after a short period of decline, closing at 6,559 yuan/ton on Friday, a weekly increase of 5.57%, and the short-term price remained low and volatile. In the news, the external Fed’s interest rate hike stance is still relatively hawkish, but the relevant domestic departments have recently introduced a number of policies to bail out real estate, and the promotion of delivery guarantees has improved expectations for real estate completion. At the same time, the domestic hot and off-season is coming to an end, boosting market sentiment. At present, there is a deviation between the macro-level and fundamental trading logic. The Fed’s inflation crisis has not been lifted. A series of important U.S. economic data released earlier were generally better than expected. Currency contraction and interest rate hike expectations did not change much. Macroeconomic pressure did not change, while fundamental support provided marginal improvement. feature.This week, PVC production increased slightly. As the high temperature eases, there is currently no obvious negative impact on the supply side, and the supply is expected to return to growth. Due to the repeated interruption of the process of consumption recovery in many regions and the weakening of external demand under the pressure of recession, the current consumption has not The performance exceeded expectations, so that the recovery of production may be greater than the effect of the small increase in demand. Although the traditional peak season is gradually entering, the downstream construction is slowly increasing, but the short-term improvement is not enough to bring about sufficient inventory optimization, high inventory status Lower price elasticity is less likely to continue rising. However, the current price is still in the pattern of low valuation and profit, which provides a sufficient margin of safety for the disk. With the improvement of domestic weather conditions, the terminal demand has shown a trend of improving month-on-month, which also brings certain support to the market, and the market outlook " The peak season of "Golden Nine Silver Ten" is still driven by demand growth, which makes the disk appear relatively defensive. In general, the phased improvement in demand entering the peak season has increased the strength of fundamental support and pushed the market price focus upward, but the intensity of demand has not yet covered the increase in the supply side, and the constraints of high inventory still exist. The interest rate meeting is approaching, the macroeconomic aspect will not change the pressure pattern, and further improvement in the demand side is needed to provide a driving force for the rebound.

Degradable plastic is a new type of plastic material. At the time when environmental protection is becoming more and more important, degradable plastic is more ECO and can be the replacement for PE/PP in some ways. There are many types of degradable plastic, the most widely used two is PLA and PBAT, PLA’s appearance is usually yellowish granules, the raw material is from plants like corn,sugarcane etc. PBAT’s appearance is usually white granules,the raw material is from oil. PLA has good thermal stability, good solvent resistance, and can be processed in many ways, such as extrusion, spinning, stretching, injection, blow molding. PLA can be used to: straw, food boxes, non-woven fabrics, industrial and civilian fabrics. PBAT has not only good ductility and elongation at break, but also good heat resistance and impact performance. It can be used in Packaging, tableware, cosmetic bottles, drug bottles, agricultural films, pesticide and fertilizer slow-release materials. At present, the global PLA production capacity is about 650000 tons, China capacity is about 48000 tons / year, but in China PLA projects under construction is about 300000 tons / year, and the long-term planned production capacity is about 2 million tons / year. For PBAT, the global capacity is about 560000 tons, China capacity is about 240000, long-term planned capacity is about 2 million tons / year, China is the largest producer of PBAT in the world.

According to the latest customs statistics, my country's PVC floor exports in July 2022 were 499,200 tons, a decrease of 3.23% from the previous month's export volume of 515,800 tons, and an increase of 5.88% year-on-year. From January to July 2022, the cumulative export of PVC flooring in my country was 3.2677 million tons, an increase of 4.66% compared with 3.1223 million tons in the same period last year. Although the monthly export volume has decreased slightly, the export activity of domestic PVC flooring has recovered. Manufacturers and traders said that the number of external inquiries has increased recently, and the export volume of domestic PVC flooring is expected to continue to increase in the later period. At present, the United States, Canada, Germany, the Netherlands, and Australia are the main destinations for my country's PVC floor exports. From January to July 2022, my country's PVC flooring sold to the United States reached 1.6956 million tons, accounting for 51.89% of the total exports; the number sold to Canada was 234,300 tons, accounting for 7.17%; the number sold to Germany was 138,400 tons , accounting for 4.23%.