After entering in September, the domestic market of PVC from low rise gradually, edged up after early to middle fell into turbulence, as of yesterday and ethylene method of PVC by calcium carbide method the national market for an average of 6375 yuan/ton and 6681 yuan/ton, and today’s market is likely to remain under pressure down, but the downstream to take positions in the low state of mind is more obvious. The analysis believes that the PVC market is more difficult to obtain improvement, mainly because of the downstream demand is weak, social inventory is not smoothly digested, coupled with the international market price is low, not conducive to the export of our product and so on.
1. Insufficient demand support and relatively high inventory. After entering in September, the domestic downstream of PVC construction to improve the expected increase, but the current situation of feedback, in addition to outside working better film and other soft products industry, and building materials related profiles, pipe enterprise starts changed little, so the small customer pick to “buy” increases with the increasing use of lay particular stress on, big business in addition to the normal procurement, occasionally the dips and single, But the overall high inventory in the market digestion speed is slow.
2. Raw materials. The current market price of calcium carbide in northwest China, the main production area, is 3650-3850 yuan/ton, and the price of calcium carbide in North China is 3980-4140 yuan/ton. On the whole, there is still no small cost pressure for PVC production enterprises that purchase calcium carbide. In terms of ethylene raw materials, the average price of Asian ethylene CFR in Northeast Asia is 970 dollars/ton, and the average price of CFR in Southeast Asia is 960 dollars/ton. The price of Southeast Asia has been reduced compared with the previous price.
3. The export market is not active, and the price of foreign trade has fallen. In July this year, China exported 177,000 tons of PVC pure powder, 20.8% less than last month. At present, although the volume of single-month export of PVC in China still maintains a high level, there has been a downward trend for 3 consecutive months, and the recent international PVC market price has been constantly reduced, which has weakened the support of domestic trade market.
4. Influenced by the futures market. Recently, PVC futures prices have fallen significantly, affected by this, the spot market also appears to follow the phenomenon. Today’s futures are also concussion low open, spot prices will be more wait-and-see.
Post time: Sep-20-2022