Recently, the domestic PVC market price is still declining, PVC futures yesterday boosted by confidence, spot price rose in the afternoon, but its driving effect is not strong, weak demand, temporarily does not support PVC prices continue to rebound after the market, the short-term market did not see obvious positive news stimulus, the weak market is difficult to change
After entering the second quarter, the domestic PVC market price is basically in a downward channel, and the decline expands again after the Dragon Boat Festival. As of Wednesday’s close, east China SG-5 mainstream price reference at 7350-7450 yuan/ton, compared with the same period in May, down 1060 yuan/ton, 12.53%, the overall monthly decline is slightly larger. After analysis the reason, the Dragon Boat Festival, the downstream demand not seen significant improvement in good conditions, downstream of the PVC tube material consumption in the field of real estate market is not optimistic, order by related demand, to maintain the real estate market demand remain light, slightly bigger market high and low price, the offer chaos, and social inventory tired library for four weeks, as a whole at high levels, The latest social inventory increased by 147.67% year on year, and the downstream generally lacked confidence in the future market. With no trading volume, PVC prices went down again.
From the cost point of view, calcium carbide price gradually stabilized after continuous decline, there is weak support, but it is difficult to return to the rising trend in the short term. In the off-season of PVC demand, the supply side is expected to increase with the completion of maintenance, but the supply-demand structure has not significantly improved. The recent policy increase and epidemic prevention and other policy adjustments have boosted the confidence of all industries and provided certain support to the PVC market. From the demand side, export enterprises signed fewer new orders, the intensity of digestion PVC weakened; From the perspective of domestic demand, terminal start or maintain the current level, the downstream demand is limited. From the supply side, PVC equipment maintenance was less in July, and the supply increased slightly.
Overall, PVC fundamentals are weak, downstream demand follow-up is still slow, lack of confidence in the future market, low enthusiasm to take goods, just need to follow up small orders. The contradiction between market supply and demand is slightly greater. Overall, it is expected that short-term domestic PVC market prices to maintain a range of shocks.
Post time: Jun-30-2022