SunSirs: Good News, China PVC Market Goes Up

According to the data monitored by SunSirs (the average ex-factory price of calcium carbide method SG5), the average price of domestic mainstream PVC on December 10 was 8,512.5 RMB/ ton, up 0.74% the previous day, 6.24% higher than the beginning of the month, 13.31% higher than the same period last year, and 20.49% higher than that of the same period last year.

In December, the PVC market has been on an upward trend, with an increase of more than 6% and a year-on-year increase of more than 20%. The spot price has broken through the bottleneck of 8,000 RMB/ ton, and there is still upward expectation. The spot market is generally above 8500 RMB/ ton, touching 9,000 RMB/ ton, and the basis is relatively large. On December 10, the PVC market continued to rise, with enterprises increasing 100-200 RMB/ ton, with an increase range of 200-300 yuan within the week, and there was almost no supply of low-cost goods in the market. This week, the market is in a good state of mind, and some enterprises are short of stock. At present, the shortage of supply has not been changed. The price of raw material calcium carbide has been pushed up. The favorable support of PVC continues. The spot price continues to rise, which drives the plate to strengthen. However, the downstream resistance is strong, and the acceptance of high price PVC is limited. In addition, the support of demand side is gradually weakened due to the influence of consumption off-season, so the space for upstream is limited.

In terms of spot goods, the mainstream quotation range of domestic PVC5 carbide is mostly around 8,350-8,750 RMB/ ton. The main stream of PVC5 type carbide in East China is 8,850-9,000 RMB/ ton, while that in Hebei is 8,620-8,720 RMB/ ton. The price of Inner Mongolia is 8,400-8,500 RMB/ ton, which is from 8,880 to 9,050 RMB/ ton in Hangzhou, 8,900-9,100 RMB/ ton in Changzhou and 8,850-9,000 RMB/ ton in Guangzhou, prices continue to rise.

In recent days, PVC futures continued to rise. On December 10, the main PVC futures contract 2101 opened at 8,120 RMB/ ton and closed at 8,200 RMB/ ton, up 2.63%. The day before, the settlement price was 7,990 RMB/ ton, and the trading range was 8,085-8,420 RMB/ ton. The turnover was 340,000 hands, and the position was reduced from 30,500 to 200,000 hands.

SunSirs PVC analysts believe that the current shortage of supplies has not been changed, the price of raw materials calcium carbide has been pushed up, the good support of PVC continues, the spot price continues to rise, driving the plate to strengthen, China PVC market is relatively strong in the short term, and there are still upward expectations, mainly high volatility.

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