According to the data monitored by SunSirs (the average ex-factory price of calcium carbide method SG5), on August 21, the mainstream average price of PVC in China was 6,577.50 RMB/ ton, which was 2.21% higher than that of 6,435.00 RMB/ ton at the beginning of the week (August 17), 1% on a month on month basis, and 2.63% lower than the same period last year.

Market Analysis

Last week, PVC market rose rapidly and smoothly. The trend of PVC futures was strong and volatile. It began to rise sharply at the beginning of the week, driving up the price of spot market. The mainstream prices of PVC all rose to varying degrees, with the increase range of 100-200 RMB. However, the actual transaction situation did not significantly improve. The PVC spot market entered a stable stage with the consolidation of futures in the middle and late part of the week. At present, the PVC market is gradually out of the off-season, some downstream product enterprises start a small increase, inquiry slightly increased, but still mainly on rigid demand procurement.

In terms of spot goods, as of August 21, the mainstream quotation range of domestic PVC5 carbide was around 6,350-6,650 RMB/ ton. In terms of futures, V2101 contract opened at 6,660 on Friday with a maximum of 6,675 and a minimum of 6,600, and closed at 6,615, down 20% or 0.3%. The turnover was 106,000, with a decrease of 38,000. The position was 184,000 hands, decreased by 2,661 hands.

On August 20, the US WTI crude oil futures market price fell slightly, and the main contract settlement price was reported at $42.82/ barrel, a decrease of $0.29. Brent crude oil futures market prices fell slightly, and the main contract settlement price was reported at $44.90/ barrel, a decrease of $0.47.

In addition, ethylene has shown a downward trend as a whole recently. In mid-August, the calcium carbide market fluctuated mainly.

Market Forecast

PVC analysts believe that the current volatility of PVC futures consolidation, PVC spot market followed the rise, but the off-season factors are still in, the actual transaction situation is not as expected, and the continued rise of motivation is insufficient. It is expected that PVC will continue to fluctuate in the short term without major contradiction in fundamentals, but it will soon enter the traditional peak season. The future OF China PVC market will be better.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.