China PVC Market Price Stops Falling and Rising

According to the data monitored by SunSirs (the average price of SG5 manufactured by calcium carbide method), on January 21, the mainstream average price of PVC in China was 7,100 RMB/ ton, which was 6,962.5 RMB/ ton compared with the beginning of the week. The price increased 1.97% in the week and 3.66% compared with the same period last year.

This week, the price of PVC spot market stopped falling and rising, and the increase range of enterprises was mostly around 50-200 RMB/ ton, and the price was generally concentrated around 7000 RMB/ ton. The market rose slightly and bid farewell to the previous decline temporarily. PVC rose this week mainly due to the strong volatility of futures prices, inventory decline and other positive boost, the spot market prices rose steadily. At present, the futures price of PVC rebounds strongly, and the spot market is actively rising. At the same time, due to the repeated public health events in some areas, the transportation is not smooth in some areas, the arrival resources are limited, and the export has improved. There is a certain demand for goods in the downstream years ago, which leads to the decline of inventory and the rise of PVC price. At present, the shipping pressure of enterprises is not big, and the supply of goods in some areas is tight, which has boosted the market atmosphere. However, restricted by the off-season and approaching the Spring Festival, the support of demand side is gradually declining, PVC has a substantial upward trend, and there is no actual driving force for the time being. The bearish sentiment of the industry has not changed, and the short-term market is mainly volatile.

According to customs data, China's total imports of pure PVC powder in November were 50,000 tons, down 3.01% from October. From January to November 2020, China's imports of pure PVC powder totaled about 919,000 tons, with a cumulative import volume of 607,000 tons over the same period of last year, a year-on-year increase of 51.4%

In terms of spot, the mainstream quotation range of PVC5 calcium carbide in China is around 6,850-7,350 RMB/ ton. The main stream price of pvc5 calcium carbide in Hebei is 6,980-7,100 RMB/ ton, that in Hangzhou is 7,150-7,300 RMB/ ton, that in Changzhou is 7,200-7,300 RMB/ ton, and that in Guangzhou is 7,250-7,400 RMB/ ton, which stops the price rising.

In terms of futures, recently, the PVC futures price fluctuated strongly and stopped falling and rising. On January 21, the main PVC futures contract 2105 opened at 7,205 RMB/ ton and closed at 7,390 RMB/ ton, up 2.28%. The day before, the settlement price was 7,225 RMB/ ton, and the trading range was 7,205-7,390 RMB/ ton, with 271,000 transactions and 8,863 positions increased to 404,000.

SunSirs PVC analysts believe that the current PVC futures price rebounds strongly, the spot market is actively rising, at the same time, the transportation is not smooth in some areas, the arrival resources are limited, in addition, the export has improved, and there is a certain reserve demand in the downstream years ago, resulting in the decline of inventory, which is good for the rise of PVC price. However, restricted by the bad news in the off-season consumption, the support of the demand side is gradually declining, and PVC has no actual driving force for the time being. The short-term PVC market is mainly volatile in China.