According to the monitoring of the commodity market analysis system of SunSirs, the domestic PVC market showed a fluctuating upward trend in June, and the market stopped rising and stabilized in the latter half of the year. According to the Commodity Analysis System of SunSirs, PVC saw a slight increase of 1.72% in June.

Basic trend: At the beginning of the month, the PVC spot market continued its downward trend from last month. However, as the first week of June approached the weekend, the market performed strongly. With the continuous rise of crude oil and the stable supply and demand of the PVC futures market, the linkage between futures and spot markets was evident, and prices continued to rise. But in the second half of the month, the market entered a period of oscillation, and prices fluctuated within a range without the support of supply and demand. From mid month to the end of the month, the market returned to calm, supply and demand remained relatively stable, and prices remained moderate and flat.

In terms of inventory, there has been a temporary increase in transaction volume in the market recently, and enterprises are rationalizing their inventory. This is mainly due to the increase in downstream market entry and procurement. But social inventory has also slightly increased, mainly due to manufacturers increasing their operating rates, and there is still some supply pressure in the market.

Cost side and demand: Since June, the sluggish performance of calcium carbide market prices has to some extent limited the strengthening trend of PVC. According to the Commodity Analysis System of SunSirs, as of the 30th, the domestic price of calcium carbide has dropped by 6.88%. On the demand side, the increase in downstream operating rates is average. On the one hand, there is inventory pressure, and on the other hand, the resumption of work for hard plastics is slow, with downstream operating rates generally below 50%. In terms of exports, it exhibits strong rigidity. To some extent, it has alleviated the dilemma of insufficient demand.

The PVC analyst from SunSirs believes that fundamentally speaking, supply and demand will continue to maintain balance in July, with both the supply and demand sides showing some improvement, but high supply materials will outweigh the increase in demand. On the one hand, the high operating rate of manufacturers will lead to increased production, which in turn will push up inventory. On the other hand, the operating rate of downstream PVC product manufacturers is still sluggish, and the inventory of enterprises is high. Market procurement remains mainly for essential needs, and exports will maintain a positive trend. Taking all factors into consideration, it is expected that PVC prices will maintain a strong trend.

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