PVC Loss Increased Significantly in May

Recently, the domestic PVC spot and futures markets have turned sharply down, both futures and spot prices have fallen, and the market trading atmosphere has turned weak. Up to now, the mainstream spot in the East China market is 8,700-8,800 CNY/ton. Since the introduction, pure spot transactions have been passively reduced, and most futures in the industry have reversed, and the overall market has reached a downturn bottleneck.

Seeing that the May Day holiday is approaching, downstream terminal companies have not shown signs of stocking in advance, and the wait-and-see mood has intensified. Some downstream companies have not started to work better, but some companies plan to take a holiday. The start of construction of pipe enterprises fell slightly to about 50%. Affected by the epidemic, the demand for real estate construction, building materials decoration, infrastructure construction and other industries in East China and other places was weak, and the inventory of products was high, which inhibited the enthusiasm of downstream enterprises to start construction.

At present, PVC production enterprises have started at a high level, and some maintenance enterprises have completed short-term repairs. Due to the impact of the public health incident, some parts of the maintenance companies planned to be repaired in April, and some parts failed to arrive as scheduled, resulting in delayed maintenance. There are relatively many maintenance companies in May. It is expected that the loss of PVC companies in May will increase significantly compared with that in April, and the supply will show a trend. tight situation.

However, no matter what is expected to happen in the domestic PVC market, the unchangeable thing is still the post-installation demand, the strong rigid demand is dependent, and the export window is still valid, and the overseas market demand has always existed. Domestic domestic demand will surely recover through policy orientation and stimulus. In addition, considering the current PVC fundamentals, the supply-side supply is neutral, the intermediate link inventory is strong, and the demand in downstream areas remains to be seen. It is expected that the domestic PVC spot market will continue to be weak in the short term.