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SunSirs: Good News to Boost PVC Price (March 15-19)

March 24 2021 13:40:58     SunSirs (Selena)

According to the data monitored by SunSirs (average price of SG5 manufactured by calcium carbide method), on March 19, the mainstream average price of PVC in China was 8,725 RMB/ ton, up 2.72% from the beginning of the week, 17.54% from the beginning of the month, and 44.85% from the same period last year. Last week, PVC market prices rose significantly, with futures and spot prices rising to more than 9,000 RMB/ ton, with the focus moving to a high level. Supported by strong cost, strong external market prices, supply and demand, and other factors such as good, PVC market has risen greatly.

At present, the price of raw material calcium carbide has risen by more than 40% since March, and the price is more than 5,000 RMB/ ton, which is significantly higher than that of the same period last year. Moreover, the supply of PVC is tight. Some PVC enterprises reduce the load to ease the pressure of cost. With the superposition of device maintenance, the on-site supply is declining, which is good for PVC upward. Meanwhile, the international supply gap is still in place, and the PVC export is better. The latest quotation adjustment of Formosa Plastics Co., Ltd In addition, the downstream products industry is gradually recovering, continuing to maintain the just needed procurement, with general enthusiasm for high price PVC procurement, and some small and medium-sized enterprises may have cost inversion phenomenon. However, as the market gradually enters the peak season, the demand side support is expected to increase. On the whole, PVC fundamentals are good, plus superposition, short-term correction is also a digestion stage after the rise, the price trend is still strong.

Spot, on March 19, domestic PVC5 calcium carbide mainstream quotation range was aound 8,800-9,050 RMB/ ton. The price in East China was 8,750-8,950 RMB/ ton, that of in North China was 8,900-9,000 RMB/ ton, that of in South China was 8,850-8,950 RMB/ ton, that of in Central China was 8,850-9,000 RMB/ ton, and that of in Southwest China was 8,800-8,950 RMB/ ton.

In terms of futures, last week's futures hit a new high in nearly 10 years, driving the spot trend up to 9,280 RMB/ ton. On March 19, the main PVC futures contract 2105 opened at 8,910 RMB/ ton and closed at 8,770 RMB/ ton. The settlement price of the previous day was 9,085 RMB/ ton, down 3.47%. The trading range was 8,720-8,960 RMB/ ton, with 692,631 transactions and 303,026 positions.

SunSirs PVC analysts believe that the price of raw material calcium carbide has risen sharply and the supply is tight, the cost support is strong, the external market is strong, the maintenance is good, and the downstream demand toughness is still positive, and the fundamentals are still good. At the present stage, it mainly digests the early growth, and it is expected that China PVC trend is still strong, and the price will fluctuate in a narrow range in the short term.

 

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