In 2025, the price fluctuations of PVC raw materials will intensify, putting pressure on the profits of enterprises
The uncertainty in the PVC raw material market will increase in 2025. The research report points out that the cost advantage of PVC produced by the calcium carbide method (the mainstream process in China) has weakened due to environmental protection production restrictions and fluctuations in coal prices. However, ethylene-based PVC (which relies on crude oil) is facing profit pressure due to the fluctuations in international oil prices.
China's "dual control of energy consumption" policy may further tighten the supply of calcium carbide, promote industry consolidation, and small calcium carbide method enterprises may accelerate their exit. Meanwhile, ethylene process enterprises in the Middle East and North America have been continuously expanding their export share by virtue of low-cost ethane resources.
Analysts suggest that PVC producers need to hedge risks by integrating the industrial chain (such as supporting chlor-alkali facilities) or signing long-term raw material agreements.
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