The impact of downstream demand factors on PVC
1 . Real estate industry
From the perspective of industry development stage, PVC has entered a mature stage and has obvious buyer market characteristics. Therefore, the impact of downstream demand on commodity prices is particularly important. The largest consumer areas of PVC are profiles, profiles, and pipes, mainly used in the construction industry. Therefore, the development trend of the domestic real estate market plays a decisive role in the demand for PVC. In addition, China is currently in the process of urbanization, and some infrastructure investments will also have a certain driving effect on the consumption of PVC.
2, Domestic economic trends in China
According to analysis, the growth rate of GDP has a significant impact on the price of PVC, and the future economic trends in China will directly affect the price of PVC. For example, in 2008, in response to the impact of the international financial crisis, the Chinese government implemented a 4 trillion yuan economic stimulus plan, mainly focusing on infrastructure and agricultural construction, triggering demand for PVC. The current urbanization may stimulate the digestion ability of the PVC market.
3. Export of plastic products
In addition to profiles and pipes, PVC is also widely used in the packaging of plastic containers, toys, and other products, as well as in daily necessities such as rubber shoes, shoe soles, ponchos, and sports goods. According to statistics, China exports 6.8 billion pairs of shoes annually, with 50% of household appliances used for export. The export situation of these plastic products will also have a certain impact on the demand for PVC.
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