Spot information: The mainstream spot price of East China Type 5 PVC is 5,310 RMB/ton, an increase of 110 RMB/ton compared to the previous period; The mainstream price of ethylene based PVC is 5,480 RMB/ton, an increase of 80 RMB/ton compared to the previous period; The price difference between electricity and gas is 170 RMB/ton, a decrease of 30 RMB/ton compared to the previous period.

Market analysis: In terms of supply, the operating rate of PVC production enterprises last week increased by 0.78% month on month and 1.99% year-on-year at 79.32%; Among them, the carbide method increased by 0.19% month on month and 1.75% year-on-year at 78.49%, while the ethylene method increased by 2.45% month on month and 2.56% year-on-year at 81.66%. In terms of demand, the peak season of Jinjiu has already passed halfway, but domestic downstream product enterprises have not seen significant improvement, maintaining a focus on essential procurement, and the overall market transaction performance is weak.

In terms of inventory, as of September 19th, the preliminary statistics of domestic PVC social inventory (21 households) samples showed a month on month decrease of 1.26% to 492,000 tons, an increase of 15.11% year-on-year; Among them, the East China region decreased by 1.18% month on month to 451,700 tons, an increase of 21.88% year-on-year, while the South China region decreased by 2.18% month on month to 40,300 tons, a decrease of 29.05% year-on-year. On September 25th, prices rebounded, but the current supply-demand contradiction still exists, with high inventory and weak downstream demand. However, macro positive support has boosted the sentiment of building materials varieties, and it is expected that the domestic PVC market will continue to operate mainly in a volatile and strong manner.

Futures prices are fluctuating strongly, and for now, the focus is on observing and watching.

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