In the context of supply-side reforms in recent years, the growth rate of chlor-alkali capacity has dropped significantly, and production has even experienced negative growth. The environmental protection inspection and other chlor-alkali supply side will help. The chlor-alkali industry itself has environmental problems, high energy consumption and high pollution. Under the background of environmental protection normalization and unprecedented intensity, the actual output of chlor-alkali is limited. Next, let's take a look at the development status of the PVC industry under environmental supervision.
According to statistics, in the PVC industry's production capacity changes in the past decade, the PVC industry in 2008-2013 is a period of rapid growth in production capacity. The rapid expansion of PVC production capacity has led to overcapacity and price declines, and the overall loss of the industry is serious. Subsequently, the elimination of backward production capacity and the supply-side reforms that began at the end of 2015 have a great impact on the PVC industry. In 2014-2016, the PVC production capacity was negative, the operating rate increased significantly, the capacity utilization rate increased significantly, and some of the “zombie enterprises with serious losses” were shut down. "To enhance the overall concentration and competitiveness of the industry."
According to the data, environmental supervision has directly affected the start of the PVC industry. In the fourth round of environmental protection inspections in 2017, the environmental inspections in Sichuan were suddenly severe at the end of July. Four PVC companies in Sichuan have cut production. In mid-August, Sichuan Jinlu and Chengdu Huarong have to stop production for half a month. At the beginning of August, the State Administration of Work Safety notified the handling of the safety accidents in Yihua, Xinjiang, revoked the Xinjiang Yihua Safety Production License, and immediately organized a comprehensive law enforcement inspection of the enterprises affiliated to Hubei Yihua Group.
In summary, under the influence of China's economic development and environmental protection supervision, the environmental protection policy has accelerated the transformation of the downstream product industry and gradually eliminated backward production capacity. The industry competitiveness is concentrated in the complete environmental protection facilities and scale enterprises. The downstream plastic products enterprises improve the core competitiveness of products, enhance product service and quality, and promote products to scale and high-end. Large, medium and small enterprises are operating in an environmentally friendly manner under the normalization of environmental protection. Under the weak downstream demand, the petrochemical production capacity continues to expand, which will aggravate the imbalance between supply and demand in the market. The whole industrial chain of production enterprises and downstream enterprises will be gradually improved, and the PVC industry will gradually develop in a stable direction.