SunSirs: The Spot Price of PVC Rose in the First Half of January 2023

According to the data monitored by SunSirs, the average price of PVC carbide SG5 was 6,216.67 RMB/ton on January 15, up 1.22% from the beginning of the month.

The domestic spot market price of PVC rose in the first half of the month. At present, the confidence in the spot market is good, and the market price center is upward. On the upstream side, crude oil rebounded after the fall, while the price of blue charcoal consolidated at a high level, and the cost of PVC was well supported in the first half of January. At the same time, the futures price has risen slightly recently, and the confidence of the spot market has strengthened. Near the Spring Festival holiday, the intra-field trading was driven by the demand of downstream enterprises for stock, which supported the spot price to some extent. Up to now, the domestic price range of PVC5 carbide was mostly around 6,000-6,450 RMB/ton.

In terms of crude oil, international crude oil futures fell on January 18. The settlement price of the main contract of US WTI crude oil futures was 79.48 dollars/barrel, down 0.70 dollars or 0.9%. The settlement price of the main contract of Brent crude oil futures was 84.98 dollars/barrel, down 0.94 dollars/barrel or 1.1%. The hawkish statement of the Federal Reserve raised concerns that it might not slow down the rate increase, and the expectation of economic recession diluted the optimistic outlook of China's fuel demand.

In terms of calcium carbide, the ex-factory price of calcium carbide in the northwest region rose last week. The average ex-factory price of mainstream calcium carbide manufacturers in the northwest rose from 3,700 RMB/ton on January 1 to 3,850 RMB/ton on January 15, up 4.05%. The price of upstream blue charcoal has been consolidated at a high level, with good cost support. The downstream PVC market has risen slightly, and the demand for calcium carbide has increased.

According to SunSirs PVC analyst, the cost of PVC was well supported in the first half of January, and the spot price of PVC rose. As the Spring Festival holiday approaches, the market transactions basically stagnate as downstream enterprises take holidays in succession. It is expected that China PVC market price will be stronger after the year. Pay close attention to changes in the news.

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