This Week PVC Market Stabilized (11.24-28)

November 28th News

I. Price Trends

According to the commodity market analysis system, this week (11.24-28), the PVC spot market mainly saw range-bound adjustments, with prices showing little change from last week. The market price experienced a slight increase of 0.48%. By Friday, the average price of SG-5 type PVC produced by the calcium carbide method in China was 4,452 CNY per ton.

II. Market Analysis

This week, there were not many changes in the factory prices of PVC manufacturers in China, with some minor adjustments, with the magnitude controlled within 50 CNY/ton. The main reason is that the fundamentals have not significantly improved, and crude oil prices are weak. The PVC futures market has been operating within a range, showing a slightly stronger trend. This week, the spot market also maintained a range-bound fluctuation, mainly stabilizing and slightly rebounding. 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 significant, and distributors' offers are generally weak. Downstream demand is insufficient, and downstream purchases are mainly based on point pricing, with low enthusiasm for inquiries and purchases, resulting in a light market atmosphere. Overall, the market is still dominated by rigid demand. As of now, the quotation range for Chinese PVC SG5 type calcium carbide material is mostly around 4480-4520 CNY/ton.

On the upstream calcium carbide front, as we entered November, calcium carbide prices continued to decline. This week, the calcium carbide market remained weak, with prices continuing their downward trend. According to the commodity analysis system, the price decrease this week was 0.79%. The weak upstream raw material prices have created some negative factors for PVC.

III. Future Market Forecast

PVC analysts believe that in terms of cost, the upstream calcium carbide in China continues to be weak, and there are no signs of a stop in the decline or a rebound in the market. This will continue to put pressure on PVC prices. From the perspective of supply and demand, the spot market for PVC in China has stopped falling but lacks strength to rebound, mainly due to insufficient operating rates of downstream industries and average demand. The supply and demand situation is unlikely to change in the short term, and it is expected that PVC prices will still maintain a range adjustment pattern next week.