PVC Futures Will Continue to Rebound (May 12-18, 2017)

1. The Comparison of PVC Market Price During May12-18, 2017

2. Chinese PVC Market Review 

The Chinese PVC market went up. Players in the spot market raised the prices on increasing futures market and modest inventory. The purchasing for PVC increased. Up to May 18, the average price of SG-5 produced via calcium carbide method was RMB 5,884/mt, which was up RMB 148/mt or 2.58% W-O-W. The average price of PVC 1000 produced via ethylene method was RMB 6,623/mt, which fell RMB 17.5/mt or 0.26% W-O-W.

3. PVC Market Outlook

Raw materials (calcium carbide): Firstly, the main impact on the PVC market is the centralized maintenance of devices. Secondly, Tianjin Dagu may restart calcium carbide device at the end of this month. Also, at present, the calcium carbide price could be supported, as the supply is insufficient and companies are still in a slight loss.On the whole, the supply-demand is the key influencing factor in the short term.

Market Supply: Next week, most PVC companies plan to examine and repair units. The overall inventory of suppliers is at a low level. The inventory in East and South China has been a gradual decline. Therefore, the PVC price will be reduced next week, which could support and promote the price of PVC.

Downstream Demand: Downstream demand has been stable relatively. With the end of Belt and Road Summit, the operating rate in Hebei will improve. However, the overall demand will not change significantly, due to busy farming seasons in Henan area.

Generally, PVC market is expected to fluctuate higher next week. Most companies have still examined and repaired. The price of PVC futures continues to rise. The companies are more bullish about PVC. It is predicted the SG-5 in East China will be in the range of RMB 5,950-6,050/mt and in South China will be in the range of RMB 5,950-6,050/mt.