According to the monitoring of the commodity market analysis system of SunSirs, the domestic PVC market fluctuated in February and closed flat at the end of the month, basically returning to the price level at the beginning of the month. According to the Commodity Analysis System of SunSirs, PVC saw a slight increase of 0.12% in February.

Basic trend: At the beginning of the month, the PVC spot market continued its upward trend from the previous month, showing strong performance. With the continuous rise of crude oil and the driving force of the PVC futures market, the linkage between the spot market was obvious, and prices continued to rise. But in the second week of the month, prices fluctuated downward without the support of supply and demand. From mid month to the end of the month, the market returned to calm, supply and demand remained relatively stable, and prices remained moderate and flat.

In terms of inventory, there has been a temporary increase in market transactions recently, and enterprises have rationalized their inventory. This is mainly due to the return after the holiday, the increase in downstream market entry, and the improvement of procurement. But social inventory has also slightly increased, mainly due to manufacturers increasing their operating rates, and there is still some supply pressure in the market.

Cost side and demand: Since February, the sluggish performance of calcium carbide market prices has to some extent limited the strengthening trend of PVC. According to the Commodity Analysis System of SunSirs, as of the 28th, the domestic price of calcium carbide has dropped by 5.45%. On the demand side, the increase in downstream operating rates is average. On the one hand, there is inventory pressure, and on the other hand, the resumption of work for hard plastics is slow, with downstream operating rates generally below 50%. In terms of exports, it exhibits strong rigidity. To some extent, it has alleviated the dilemma of insufficient demand.

The PVC analyst from SunSirs believes that fundamentally speaking, supply and demand will continue to recover in March, with both the supply and demand sides showing some improvement, but high supply materials will outweigh the increase in demand. On the one hand, the high operating rate of manufacturers will lead to increased production, which in turn will push up inventory. On the other hand, although downstream PVC product manufacturers are gradually resuming work, their inventory is high, and market procurement remains mainly for essential needs. The export situation will continue to improve. Combined with the March meeting, driven by favorable policies, PVC prices are expected to maintain a strong trend.

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