8th, Sep is sure to be a special day even a disaster for all the PVC Flooring and PVC-related factories.
The price of raw materials breaks through 10000 CNY/Ton and the single-day increase reached 700 CNY/Ton. It exceeds the comprehensive growth rate for the whole year of 2021.
Producing method of PVC resin
75% PVC is produced by the method of calcium carbide in China because of its lower cost than the ethylene method. The price of calcium carbide is CNY 3200 per ton on average.
The PVC Producing Center
The PVC Production Center
Erdos city of Inner Mongolia was chosen to be the production center of PVC as of its rich coal and limestone resources.
Fifty thousand Coal Mining industry companies were started, and hundreds of power plants were built. Up to now, China has a total capacity of PVC 40 million tons per year. Its price ranged from 5000-8000CNY/Ton from the year 2000 to 2019.
Actions Taken to Keep the promise of Carbon Neutralization by 2060
However, in the September of 2020, China agreed to reach peak carbon emission by 2030. To reach the goal of carbon emission, Erdos naturally became the main target. To produce 1ton of calcium carbide, 1.1tons of coal and 3400KWH electricity are required. At the same time, 14000CBM waste air, 1.73kg dust emission, 1.5kg Sulfur dioxide(SO2), and 0.12kg industrial powder are generated. If calculating by the capacity of 40million tons, it will be 560 billion CBM waster air,69.2million kilograms of dust, 60 million kilograms SO2, 4.8 million kilograms of industrial powder are discharged every year. It’s totally out of imagination.
The government of Inner Mongolia took serious actions to reduce carbon emissions from early 2021.
Actions are like this:
- Calcium carbide production is heavily reduced and limited.
- Electricity price was raised from CNY0.01 to CNY0.1 per KWH. And electricity available time is strictly limited.
- Bitcoin(BTC) miners are forbidden in Erdos. Because too much electricity is needed for mining.
Will PVC price go Higher and Higher?
PVC price increased immediately after such actions were announced, as 75% of PVC are made from calcium carbide, arriving at CNY 9200/ton.” PVC Floor factories had to adjust prices because PVC is the main material, floor core is of at least 30% PVC, wear layer, decor film, and acoustic pad are made from PVC. “ Mr Yip from YUHE Floor said. “The main cause for the huge increase on 8th Sep is the increasing need. 80% of PVC floor factories are preparing stocks for the coming golden season. Besides, some PVC factories in Inner Mongolia are not allowed to produce according to government policy. Such imbalance led to the price increasing.”
Analyst says Government will have to keep pressure on PVC factories and Calcium carbide production to reach the goal of saving energy in 2021. In such a case, PVC price has chances to give us more surprises.
China PVC SG5 Price Updates on 30th, Sep.
Surprise: PVC SG5 CNY 12587.5 per ton. 25% increase than 10th, Sep when the blog was first posted.
China PVC2201 Price Updates on 12nd,Oct.
Bigger surprise: PVC SG5 CNY14525 per ton, 45% increases than 10th, Sep when the blog was posted. Can you believe this? It is really happening. As a PVC floor manufacturer, we can not accept this. Congratulations to the flooring suppliers that keep a lot of PVC floor stocks in the warehouse. Your floor value is doubled.
China PVC2201 Price dropped to CNY 9500/T on 29th Oct.
Since October 23rd, PVC 2201, the key material of WPC/SPC/LVT floor, has dropped 30%, This is very exciting. We can expect that SPC floor price will get back to normal price ASAP.