This Week's PVC Prices Show Narrow Fluctuations (8.4-8.8) in China

August 8th News

I. Price Trends

According to the commodity market analysis system, this week (Aug 4-8) the PVC spot market showed a range-bound fluctuation, with prices rising and then falling during the week, and by the end of the week, prices had largely returned to the levels at the beginning of the week. As of Friday, the average price of China's PVC calcium carbide method SG-5 type was 4,780 CNY/ton, with a slight increase of 0.61% within the week.

II. Market Analysis

This week, most PVC manufacturers in China maintained stable prices, with some making minor adjustments within a range of 50 CNY/ton. The main reason is the lack of positive fundamentals, as crude oil prices have been weak and declining, and the futures market has been fluctuating within a narrow range, making it difficult to sustain a long-term bullish trend. After an initial rise at the beginning of the week, PVC prices stabilized and then slightly declined, showing a weaker trend with a slight downward shift in the overall range. From the perspective of supply and demand fundamentals, the spot PVC market in China is characterized by a relatively loose supply and demand situation, with most manufacturers operating stably. Supply pressure has not changed significantly, and dealers' offers are generally weak. Downstream demand is insufficient, with downstream purchases mainly based on point pricing, and the enthusiasm for inquiries and purchases is low, resulting in a quiet market atmosphere. The listed prices are relatively low. Overall, the market is still dominated by rigid demand, and the trading atmosphere is average. As of now, the price range for Chinese PVC SG5 type calcium carbide material is mostly around 4850-5000 CNY/ton.

In the upstream carbide market, this week has seen a recovery, with prices slightly increasing. According to the commodity analysis system, the price increase this week was 1.4%. However, since August, the market has experienced fluctuations, resulting in an overall change rate of 0%. Prices remain relatively low, providing limited support for PVC.

3. Future Market Forecast

PVC analysts believe that the PVC spot market in China is mediocre, mainly due to insufficient downstream operating rates and average demand. The supply and demand situation is unlikely to change in the short term, and it is expected that PVC prices will continue to maintain a range-bound adjustment pattern next week.