SunSirs: Less Goods and Higher Price, PVC Market Continues to Rise

According to the data monitored by SunSirs (the average ex-factory price of calcium carbide method SG5), the domestic mainstream PVC average price on December 3 was 8,287.5 RMB/ ton, up 3.76% compared with the beginning of the week, 13.72% on a month on month basis, and 17.3% higher than the same period last year.

Since the PVC market rose by 13% in November, the rising trend has continued to last week. Now it has increased by more than 3% and increased by 17% compared with the same period of last year. The price of PVC has risen to the highest level in recent years at over 8,000 RMB/ ton. The rise was due to tight supply, stronger futures and higher raw materials. Last week, most PVC enterprises rose 100-300 yuan, the price was around 8,500 RMB/ ton, the market price was low, the supply of goods was scarce, and the market atmosphere was not high. Overall, PVC good support in the short term, the future market or will usher in a rational callback.

In terms of spot goods, domestic PVC5 type tourmaline's mainstream quotation range is around 8,100-8,500 RMB/ ton. In East China, the mainstream of PVC5 type tourmaline was around 8,500-8,600 RMB/ ton; in Hebei, 8,190-8,270 RMB/ ton was delivered; in Inner Mongolia, the price was increased by 7,970-8,050 RMB/ ton, including tax; in Hangzhou, the range of PVC5 was 8,500-8,650 RMB/ ton, and that in Changzhou was 8,600-8,700 RMB/ ton, and in Guangzhou is 8,620-8,750 RMB/ ton, and the quotation of various places is rising steadily.

In terms of futures, the main contract 2101 of 3-day PVC futures opened at 7,670 RMB/ ton and closed at 7,710 RMB/ ton. The settlement price of the previous day was 7,775 RMB/ ton, down 0.84%. The trading range was 7,580-7,780 RMB/ ton, with 281,160 transactions and 254,772 positions.

SunSirs PVC analysts believe that the futures market has been fluctuating at a high level in recent days, the spot market trend is strong, the inventory is low, the manufacturer's delivery is tight, the delivery cycle is extended, and the pre-sale is the main factor. At the same time, the price of raw material calcium carbide has risen sharply, and the cost side has also boosted the PVC's sharp upward trend. Under the good fundamentals, the trend of PVC will be firm in the short term. With the weakening of the supporting force of the future demand side, China PVC prices will fall back rationally.

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