This week, PVC market continues to decline in China

December 12 news

I. Price Trends

According to the commodity market analysis system, this week (12.8-12) the PVC spot market experienced a range-bound fluctuation with weak price performance. As of Friday, the average price of SG-5 type PVC produced by the calcium carbide method in China was 4,295 CNY/ton, down 2.14% from the previous week.

II. Market Analysis

This week, PVC continued the downward trend from last week, with a steady decline throughout the week and a further deepening of the price decrease. The market showed slight signs of stabilization near the end of the week. Some manufacturers adjusted their prices during the week, with adjustments ranging from 50 to 100 yuan. The market generally followed the downward trend, with dealers lowering their offers. The main reason for this is the lack of positive fundamentals, as crude oil prices remained low, and the PVC futures market fluctuated and declined. PVC spot prices also followed the downward trend, showing weakness. From the perspective of supply and demand, the operation of manufacturers' facilities was stable, with high production rates. Supply pressure remained largely unchanged, and dealer offers were generally weak. Downstream demand was insufficient, with downstream purchases mainly based on point pricing, and the enthusiasm for inquiries and purchases was low, resulting in a quiet market atmosphere. The listed prices were low. Overall, the market was still dominated by rigid demand, with moderate trading activity. As of now, the price range for Chinese PVC SG5 type calcium carbide material is mostly around 4300-4380 CNY/ton.

In the upstream calcium carbide sector, the calcium carbide market in China was mainly stable this week (12.8-12), with minor fluctuations recently. According to the commodity analysis system, the price increase this week was 0.15%. However, since entering December, the calcium carbide market in China has reached a high level, showing weak momentum for further increases, and there are signs of a peak, providing limited support to PVC.

III. Future Market Forecast

PVC analysts believe that the spot market for PVC is showing weakness, mainly due to low operating rates in downstream industries and insufficient 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.