In the first half of 2021-2022, CPE prices soared, basically reaching the highest in history. By June 22, downstream orders decreased, and the shipping pressure of chlorinated polyethylene (CPE) manufacturers gradually emerged, and the price was adjusted weakly. As of early July, the decline was 9.1%.
As for the market trend in the later period, many industry insiders believe that the short-term CPE market price may further decline under the influence of negative factors such as the price of raw material liquid chlorine has fallen, the cost has been reduced, the domestic and foreign demand is both weak and downstream orders are insufficient to follow up, and the inventory of manufacturers is high.
One of the main reasons for the rapid decline of chlorinated polyethylene (CPE) is the change in the cost side. Liquid chlorine accounts for 30% of the cost of CPE. Since June, the reserves of liquid chlorine have been sufficient, and the prices of most downstream products have weakened, resulting in The profit of some products is not good, and the demand for liquid chlorine has decreased, which has led to the continuous decline in the price of liquid chlorine, and the cost of CPE has also been continuously reduced, and the price has been showing a downward trend.
In July 22, chlor-alkali enterprises planned less maintenance, and some new production capacity plans to start production. However, downstream chlorine consumption is in the off-season, and the purchasing enthusiasm is not high. The liquid chlorine market continues to decline, and it is difficult to drive CPE prices higher on the cost side.
The downstream demand for CPE is weak, the operating rate of downstream enterprises is lower, the shipment of PVC enterprises is also blocked, the backlog of inventory, and the price of PVC market is falling rapidly. Domestic CPE’s main downstream PVC profile and PVC pipe companies maintain rigid demand for CPE purchases, and their intention to replenish their positions is low; foreign export orders also decreased compared with last year. The weak internal and external demand has led to a slow flow of CPE supply and high inventory levels.
On the whole, under the weak demand side, the short-term CPE shipment pressure will not decrease. It is expected that the market will show a further weakening trend, and the price may continue to decline.
Post time: Mar-27-2023
