A Big Reveal of the Recent Market Situation of PVC Materials!

As the "versatile player" in the plastic industry, PVC materials have been shining brightly in numerous fields such as construction and packaging. Recently, the market situation of PVC materials has drawn much attention. Come and take a look together!

1. In terms of price, in the futures market, at 15:08 on February 28th, the futures price of PVC was 5,180 yuan per ton, with a slight increase. After the holiday, the futures price of PVC has been like riding a roller coaster, fluctuating up and down, which reflects the diverse views of the market on its future trend.

From the perspective of the spot market, there are price differences in different regions. In the East China region, the ex-warehouse spot price of Type 5 PVC produced by the calcium carbide method fluctuates between 4,950 and 5,100 yuan per ton, and the price of PVC produced by the ethylene method is slightly higher. The prices in the South China and North China regions also vary, which is related to local supply and demand, transportation costs, and other factors.

2. In terms of supply and demand, on the supply side, the current operating rate remains at a high level. Although some enterprises' equipment is under maintenance, there are few planned spring maintenance schedules in March. It is expected that the overall supply volume will still be substantial. On the demand side, however, it is somewhat "lackluster". The operating rate of downstream product manufacturing enterprises is low. The construction progress in the real estate sector is slow, there is a shortage of orders, and the purchasing enthusiasm is not high.

Fortunately, the export orders are performing well at present, bringing a glimmer of comfort to the market. In terms of inventory, as of the week ending February 21st, the social inventory has continued to rise, exerting considerable pressure on prices.

3.

In terms of cost, the calcium carbide method is affected by the price of calcium carbide. Recently, the supply of calcium carbide has increased, and there is a risk of price decline, weakening the cost support. In the ethylene method, the price of ethylene has risen, temporarily supporting the cost of PVC. However, after the subsequent equipment maintenance is completed, the price of ethylene is likely to correct.

Overall, the current PVC market features a weak reality but strong expectations. In the short term, it is highly likely that the market will continue to show a volatile trend, with prices fluctuating within a certain range.

In the medium to long term, if the downstream demand can be robust, especially when the real estate market recovers, the price is expected to rise. However, if the demand recovery falls short of expectations and new production capacities are concentratedly launched, there will be tremendous pressure! Fellow industry practitioners, you must closely monitor the market changes and adjust your strategies in a timely manner!