According to the monitoring of the commodity market analysis system of SunSirs, the domestic PVC spot market continued the downward trend of the previous two months in October, with prices continuing to fluctuate downward and the decline generally slowing down. As of October 301, the average price of PVC in China was 4,570 RMB/ton, with a monthly price drop of 1.80%.

This month, the PVC spot market maintained a weak trend, and under the influence of supply and demand pressure, prices continued to decline throughout the month. As the end of the month approached, PVC prices stabilized significantly, with a slight rebound, but the increase was very limited.

Overall, the PVC spot market in October tended to be weak. Specifically, on the one hand, there is insufficient cost support due to the decline in upstream crude oil and ethylene, and the negative impact of the drop in carbide prices on carbide materials. The futures market has been repeatedly suppressed by weak fluctuations, while spot prices have followed the market trend and fluctuated downwards. On the other hand, there is obvious pressure on supply and demand, and social inventory remains at a medium to high level. On the supply and demand side, the operating rate of PVC manufacturers remains high, and production continues to increase. The market is still in a stage of oversupply. The market is continuously destocking, and currently there are signals of bottoming out and stabilizing. Downstream procurement is mainly based on spot prices, with low enthusiasm for inquiry based procurement and a sluggish market atmosphere. The hanging order price is relatively low. Overall, it is still mainly driven by basic needs, and the trading atmosphere is average. As of October 31st, the mainstream price range of PVC SG5 electrical aggregate in China is mostly around 4,600-4,700 RMB/ton.

In terms of upstream calcium carbide, since October, the price of calcium carbide has turned downward, and the decline is significant. According to data monitored by Business Society, the decline in calcium carbide in October was 2.61%. Due to the weak cost and the suppression of supply and demand, the PVC market has not improved.

The PVC analyst from SunSirs believes that there will be little change in the supply and demand pattern of PVC in the short term, mainly due to the stable operating rate of manufacturers and the high inventory of enterprises and the market. The market is still in the destocking stage in the future, and considering that prices are gradually stabilizing at the end of the month, there may be room for a rebound in the market in the future.

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