The average price of domestic PVC (calcium carbide method SG5 ex-factory average price) mainstream on March 24 is 6000 RMB/ton, down 1.84% from the previous day, down 4.99% from the same period last year. 

PVC commodity index was 76.03 on March 24, down 1.43 points from yesterday, down 23.97% from the highest 100.00 point (2011-Septmber-05) in the cycle, up 30.48% from the lowest 58.27 point on December 20, 2015 (Note: Period refers to 2011-Septmber-01 till now).  

Product: Domestic PVC market continued to fall on Tuesday. PVC futures continued to decline, driving the spot with the plate. As for abroad, by the recent oil market continuing to decline and the impact of public health events abroad, the demand for PVC significantly reduced, resulting in a greater impact on PVC exports, business confidence is not good.

As for domestic, PVC downstream enterprises have been returning to work, the demand shows a slow growth trend, but maintain just need to purchase. The transaction is limited, and most of manufacturers are more difficult to ship. At present, PVC supply end is slightly abundant, and inventory is still at a high level. Manufacturers have more price cut for shipping, but the actual trade is general. The transaction center is moving down, and manufacturers will advance into maintenance to maintain costs. In the short term, there is no obvious positive signal in PVC market at home and abroad, and the prices of futures and spot frequently fall. The overall market is relatively low, and the market is weak.

As of March 24, the domestic PVC mainstream quotation range was 5800-6200 RMB/ton. At present Changzhou area PVC5 type calcium carbide mainstream was 5,730-5,900 RMB/ton near. Hangzhou area PVC5 type calcium carbide range was 5,750-5,900 RMB/ton for pick-up. Guangzhou area PVC common calcium carbide mainstream price was around 5780-5,800 RMB/ton near while the real deal can be discussed.

Futures: PVC2005 contract opened 5,740 RMB/ton, the highest 5,795 RMB/ton, the lowest 5,575 RMB/ton, closed at 5,680 RMB/ton. Compared with the previous trading down 125 RMB/ton, down 2.15%, the volume increased to 227,756 hands, holding 3152 hands down to 112,483 hands. V2005 futures continued to fall, the intraday limit to a low of 5, 575 RMB/ton.

Industry Chain: It can be seen that although the current crude oil rebound, it is difficult to reverse the long-term situation of low oil prices. It is expected that the near future crude oil will still be in the low volatility, and do not rule out the possibility of further exploration. A public health pandemic, which could trigger a sharp contraction in economic activity, would not support ethylene prices, so business analysts expect them to remain in a narrow range for the rest of the year. 

As for calcium carbide, in late March, calcium carbide market will have small fluctuation. In late March, calcium carbide prices in the northwest will fall slightly.

Industry: On March 24, 2020, the rubber and plastic commodity list have one commodity that increased in March, that is natural rubber (0.21%). There is a total of 12 kinds of commodities falling month-on-month, and 1 kind of commodities falling by more than 5%, accounting for 6.3% of the monitored commodities in this sector. The products before the decline were SBR (-5.07%), butadiene rubber (-4.99%), and PS (-4.56%).

Market Forecast: SunSirs PVC analysts think that current PVC futures fell, adn the spot market with that trend down. There is no obvious positive signal at home and abroad, and it is expected that the PVC market will continue to decline in the short term.

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