The mainstream transaction prices in the domestic PVC market continue to decline, the market is not performing well, and the overall regional quotations are chaotic. First of all, from the perspective of upstream PVC factories, the ex-factory price is still lowered by 300-400 yuan/ton, and the ex-factory price of ethylene method is lowered by 500-600 yuan/ton. In the spot market, as the futures market was approaching its limit, traders' bid prices continued to decline within the day, but the falling market could not trigger heavy demand, and the overall transaction was poor and trading was poor. Compared with one-buy-price-point-price sources, the advantages are obvious. Downstream product companies, in response to the current declining market, tend to be cautious and wait-and-see and just need low-price pending orders.
Since the national policy to control coal, the continuous bearish sentiment has continued to act on the PVC futures market. The price of Calcium Carbide has declined since yesterday, and has fallen by USD30-40/ton for two consecutive days. However, compared with the decline of more than 4200 points at the highest point of PVC, the decline of calcium carbide is still relatively small. At present, there is a regional accumulation of calcium carbide due to the impact of transportation. And affected by the weak PVC market, calcium carbide is hard to say in the short term, and its supporting role for PVC is correspondingly weakened. From the perspective of sentiment, in the down phase, sentiment continued to act on the market and appeared excessive, leading to the continuous decline of spot prices and the continuous intervention of hedging to suppress the trend. On the whole, the current supply and demand side has a weak influence on the futures market, and prices cannot return to supply and demand. However, a small destocking can still see that the domestic demand is still in rigid demand. Therefore, the futures market cannot be overly bearish. In the short term, we believe that the spot market price may fluctuate mainly, and continue to pay attention to the current market sentiment and the impact of the coal industry. If calcium carbide continues to decline in PVC spot prices, there may still be downside risks. However, there are also new positive stimuli in the market, and be wary of the inflection point when the market stops falling and turns up.
We have done chemical products for over 30years. Our main products include PVC Resin, CPE, TIO2,PE WAX, Paraffin Wax, Stabilizer ETC.
