This Week's PVC Market Stabilizes in China (10.20-24)

October 24th, news:

I. Price Trends

According to the commodity market analysis system, this week (10.20-24) the PVC spot market mainly saw range adjustments, with prices changing little from last week and experiencing a slight increase within the week. By Friday, the average price of China's PVC calcium carbide method SG-5 type was 4,542 CNY/ton, with the weekly PVC price increase at 0.13%.

II. Market Analysis

This week, the factory price of PVC manufacturers in China has not changed much, with some minor adjustments, kept within 50 CNY/ton. The main reason is that there has been no significant improvement in the fundamentals. Although crude oil prices have risen, the PVC futures market has still not escaped the weak pattern, maintaining a range-bound trend this week. PVC prices lack the strength to rise or fall, and the overall fluctuation range continues to narrow. From the perspective of supply and demand fundamentals, the spot PVC market shows a loose supply and demand situation, with most manufacturers operating stably. The supply and demand pressure is not high, and dealers generally offer weak quotations. Downstream demand is insufficient, with downstream purchases mainly based on fixed pricing, and the enthusiasm for inquiries and purchases is not high, resulting in a lukewarm market atmosphere. Overall, the market is still dominated by rigid demand. As of now, the quotation range for SG5 type calcium carbide-based PVC in China is mostly around 4600-4700 CNY/ton.

In the upstream calcium carbide market, as October begins, prices continue to decline. This week, the calcium carbide market remains weak, with prices continuing their downward trend. According to the commodity analysis system, the price drop this week was 0.31%. Weakness in upstream raw material prices is putting downward pressure on PVC.

III. Market Forecast

PVC analysts believe that in terms of cost, the upstream calcium carbide market in China remains weak, with no signs of a rebound. This will continue to put downward pressure on PVC prices. From the perspective of supply and demand, the PVC spot market in China is lackluster, 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 fluctuate within a range next week.