SunSirs: Market is Weakening, China PVC Market Price is Down

According to the data monitored by SunSirs (the average price of SG5 manufactured by calcium carbide method), on May 20, the mainstream average price of PVC in China was 9,250 RMB/ ton, down 0.14% from the previous day, up 3.07% from the previous day, and up 54.47% from the same period last year.

On May 20, the futures price fell, driving the spot market price down. The enterprise offers were loose, mainly in the narrow range of 50-150 RMB/ ton. However, the overall downward range of the market was not large. The actual inventory of the goods holders gave way to the profit, and the price of the goods was still high. At present, under the guidance of macro policies, the prices of nearly 100 kinds of raw materials have collectively "dived", and the market has gradually returned to rationality. The price of PVC futures has fallen sharply, and the price of PVC spot market has declined due to the negative factors such as poor transaction of high prices and reduced exports. However, in May, due to the concentration of maintenance devices, the loss is large, the supply side is expected to tighten, and the downstream demand is still supported, Positive factors still exist, so PVC is not easy to fall, rational correction should not be too pessimistic.

In terms of spot price, the main quotation range of PVC5 calcium carbide in China is around 9,150-9,400 RMB/ ton, that of in Hangzhou is 9150-9200 RMB/ ton, that of in Changzhou area is 9200-9300 RMB/ ton, that of in Guangzhou is 9300-9380 RMB/ ton; Local market prices fell.

In terms of futures, the sharp downward trend of prices led to the trend of spot prices. On May 20, V2109 contract opened at 9,005, highest at 9,010, lowest at 8,755, positions at 383,126, settlement at 8,870, and settlement of the previous day was at 9,115, down 245.

SunSirs PVC analysts believe that under the guidance of macro policy, the market gradually recovers its rationality, the market is weakening, and the negative factors such as poor high price transaction lead to the decline of PVC market price. However, the supply side is expected to tighten, and the downstream demand is still supported. Therefore, it is not easy for PVC to fall deeply. It is expected that China PVC market will continue to decline in the short term.

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