According to the monitoring of the commodity market analysis system of SunSirs, the PVC spot market continued its previous downward trend last week. As of Friday, the average price of SG-5 PVC carbide method in China was 4,962 RMB/ton, with a price drop of 0.20% during the week.

Since December, the PVC market has shown weak performance, with prices continuously fluctuating and falling. Last week, due to the lack of fundamental positive fundamentals, The price of PVC has been declining. On the one hand, there is a lack of favorable guidance from upstream crude oil and ethylene. In addition, the declining performance of the futures market has put pressure on the spot market. The performance of the supply and demand side is loose, and the operating rate of manufacturers is generally high, with more than half of the manufacturers operating at full capacity. The supply pressure is high, and dealers generally offer low prices. Downstream procurement is mainly based on spot prices, with low enthusiasm for inquiry based procurement and a sluggish market atmosphere. The hanging order price is relatively low. Overall, it is still mainly driven by basic needs, and the trading atmosphere is average. As of now, the quotation range for PVC SG5 electrical aggregate in China is mostly around 4,800-5,050 RMB/ton.

In terms of upstream calcium carbide, since December, the price of calcium carbide has started to decline, mainly from high levels. According to data monitored by SunSirs, the price of calcium carbide rose or fell by 0 last week. But it has already fallen by more than 2% within the month, and overall, the price increase of calcium carbide market this week is weak, with limited support. Moreover, with downstream PVC falling back into a slump, the price of calcium carbide may also experience a fluctuating trend.

The PVC analyst from SunSirs believes that in the short term, the supply and demand of PVC will be weak, the operating rate of manufacturers will remain high, and both enterprise inventory and market inventory will be high. On the cost side, the upstream price of calcium carbide is unlikely to continue its upward trend, and the cost support is average. From the perspective of the futures market, the PVC futures market has performed poorly in the later stage, affecting the confidence of the spot market, and the spot market is generally bearish. It is expected that the PVC spot market will continue to maintain a narrow adjustment in the short term, and we will closely monitor changes in the news.

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