According to the monitoring of the commodity market analysis system of SunSirs, the domestic PVC spot market continued the downward trend of the previous three months in November, with prices continuing to fluctuate and decline, and the decline continuing to slow down. As of November 28th, the average price of PVC in China was 4,452 RMB/ton, with a monthly price drop of 2.3%.

In November, the PVC spot market maintained a weak and volatile pattern. Under the influence of supply and demand pressure, prices continued to decline throughout the month. As the end of the month approached, the PVC market stabilized significantly and prices slightly rebounded, but the increase was very limited.

Overall, the PVC spot market was weak in November. Specifically, firstly, there is insufficient cost support due to the decline in upstream crude oil and ethylene, as well as the negative impact of the drop in carbide prices on carbide materials. The stacked futures market is difficult to break out of a clear market trend, and spot prices follow the market trend and fluctuate downwards. Furthermore, the pressure of supply and demand is evident, 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. Overall, it is still mainly driven by basic needs, and the trading atmosphere is average. As of November 28th, the mainstream price range of PVC SG5 electrical aggregate in China is mostly around 4,480-4,530 RMB/ton.

In terms of upstream calcium carbide, since November, the price of calcium carbide has continued the downward trend in October, and the decline has slowed down significantly. According to data monitored by Business Society, the decline in calcium carbide in November was 0.55%. Due to the weakness in 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 will gradually stabilize and rise by the end of November, there may be room for a rebound in the market in the future.

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