pvc supply and demand in the case of serious excess capacity, due to the impact of electricity costs and other factors, the western region is still production capacity, will further exacerbate the situation of overcapacity. The demand side is even more pessimistic, real estate and pipes, products and other industries overall downturn, making the continuation of PVC demand weakness. Weak downstream demand, there is a substantial improvement in the short term is difficult, PVC industry will face greater challenges in a tough situation.
On the other hand, e-commerce is growing at an unprecedented pace of development, a profound impact and change the traditional manufacturing and traditional retail. Especially in consumer goods (B2C) domain, e-commerce has evolved from the production, circulation, all aspects of retail, the traditional model of a profound transformation, completed the information flow, capital flow and logistics full penetration in the consumer retail sector, out of the backward production and management methods, to achieve a redistribution of value. And this phenomenon, in the industrial (especially basic raw materials) B2B field, change the curtain is gradually opened.
According to statistics, the domestic market continued to cut pvc, although the stock spot PVC market is not big, but a lack of confidence, traders and downstream replenishment enthusiasm weak, resulting in the production of PVC business inventories increased pressure. Since 2014 increasing downward pressure on the economy, investment-driven model for the survival of pre-PVC industry also came to an end, PVC business struggling, the whole industry into a deadlock losses.
Apart from the PVC industry, the whole plastic industry is also influenced by the oil price fluctuation, which will future has an impact on the plastic recycling industry.