SunSirs: China PVC Market Strengthens and Price Rises

According to the data monitored by SunSirs (the average price of SG5 manufactured by calcium carbide method), on February 19, the average mainstream price of PVC in China was 7,575 RMB/ ton, up 3.74% from 7,350 RMB/ ton before the Spring Festival (February 9), and 14.23% from the same period last year.

After the holiday, the PVC market rose, and the price continued to rise by 3.74% on the first two days of construction. The enterprise's daily increase was about 100-300 RMB/ ton, and the current price has risen to more than 8,000 RMB/ ton. Recently, due to the sharp rise in futures prices, the spot price was driven. Meanwhile, during the Spring Festival, due to the extremely cold weather in the United States, the production capacity decreased, the international supply was tight, and the PVC export volume increased, which helped the PVC price rise. At present, there are too many enterprises that stop reporting PVC. They mainly issue orders and are cautious about the market. They are bullish. This year, the downstream demand started ahead of schedule, and the market is expected to be good. Boosted by the positive factors of rising futures price, good export and stronger demand, the PVC market is relatively strong, and the price is expected to continue to rise.

In terms of spot, the mainstream quotation range of PVC5 calcium carbide in China is around 7,750-8,050 RMB/ ton. The main stream of PVC5 calcium carbide in East China is around 7,900-8,000 RMB/ ton, the main stream of PVC5 calcium carbide in Hebei is 7,750-7,900 RMB/ ton, the range of PVC5 calcium carbide in Hangzhou is 7,900-8,050 RMB/ ton, the main stream of PVC5 calcium carbide in Changzhou is 8,000-8,050 RMB/ ton, and the main stream price of PVC common calcium carbide in Guangzhou is 8,000-8,150 RMB/ ton.

Futures, futures prices rose, boosting the spot market. On February 19, the main PVC futures contract 2105 opened at 7,960 RMB/ ton and closed at 8,220 RMB/ ton. The settlement price of the previous day was 7,955 RMB/ ton, up 3.33%. The trading range was 7,885-8,250 RMB/ ton, with 395,602 transactions and 358,610 positions.

SunSirs PVC analysts believe that the current market is strong, PVC futures prices and spot market prices are rising, with the increase of export volume, the start of downstream enterprises is earlier than in previous years, and the demand side support is gradually stronger, the market expectation is good, and it is expected that China PVC market will continue to rise in the short term.

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