This Week's PVC Prices Show Narrow Fluctuations (9.15-19)

September 19th, news:

I. Price Trends

According to the commodity market analysis system, this week (9.15-19), the PVC spot market in China mainly experienced range-bound adjustments, with prices showing little change compared to last week. Prices rose slightly and then retreated modestly during the week. By Friday, the average price of SG-5 type PVC (calcium carbide method) in China was 4,680 CNY/ton, with a slight increase of 0.43% over the week.

II. Market Analysis

This week, most PVC manufacturers in China maintained their factory prices at last week's levels, with some making minor adjustments within a range of 20-50 CNY/ton. The main reason is that the fundamentals have not significantly improved, with crude oil prices hovering at medium to low levels and the futures market maintaining a range-bound trading pattern. After an initial rise at the beginning of the week, PVC prices stabilized and slightly declined from mid-week to the end of the week, showing a weak trend, although the overall price range shifted slightly upward. From the perspective of supply and demand, the spot PVC market is relatively loose, with most manufacturers operating stably. The supply pressure has not changed much, and dealers' quotations are generally weak. Downstream demand is insufficient, with buyers mainly engaging in 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, with moderate trading activity. As of now, the quoted prices for SG5 type calcium carbide-based PVC in China are mostly in the range of 4730-4800 CNY/ton.

In the upstream calcium carbide sector, this week, the calcium carbide market in China has warmed up, with prices rising. According to the commodity analysis system, the price increase this week was 4.0%. As the weekend approaches, the rise in calcium carbide, due to the lag in transmission, may later provide support to the cost of PVC.

III. Market Forecast

PVC analysts believe that the PVC spot market in China is lukewarm, mainly due to insufficient downstream operating rates and moderate 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.