This Week's PVC Prices Show Weak Fluctuations (8.18-22) in China

August 22, News

I. Price Trends

According to the commodity market analysis system, this week (8.18-22) the PVC spot market showed a range-bound fluctuation, with weak price performance. As of Friday, the average price of SG-5 type PVC (calcium carbide method) in China was 4,720 CNY/ton, down 0.38% from the previous week.

II. Market Analysis

This week, PVC mainly showed a weak consolidation trend. Most manufacturers maintained stability during the week, with some making minor adjustments, keeping the range within 50 CNY/ton. In the past two weeks, the PVC market has been in a weak range, mainly due to the lack of positive fundamentals, persistently weak crude oil prices, and futures market weakness, causing prices to hover at low levels. The overall range for PVC spot prices has slightly shifted downward. From the perspective of supply and demand fundamentals, the spot PVC market shows a relatively loose supply and demand situation, with most manufacturers operating stably. Supply pressure has not changed much, and distributors generally offer weak quotes. Downstream demand is insufficient, with downstream purchases mainly based on fixed pricing, and inquiry and purchasing enthusiasm is low, resulting in a subdued market atmosphere. The listed prices are relatively low. Overall, the market is still driven by rigid demand, and the trading atmosphere is average. As of now, the quotation range for Chinese SG5 type calcium carbide-based PVC is mostly around 4750-4850 CNY/ton.

In the upstream calcium carbide sector, this week, the calcium carbide market in China showed a sluggish performance. The price did not continue the previous upward trend and instead declined, with the commodity analysis system showing a price decrease of 0.96. The price remains at a relatively low level, providing limited support to PVC.

III. Market Forecast

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