Price Trend

According to the data monitored by business associations (average price of SG5 manufactured by calcium carbide method), domestic PVC quoted 6622.5 yuan/ton on September 02, and domestic PVC quoted 6655 yuan/ton on September 06. The overall price fluctuation ranges from 50 to 100 yuan/ton, with an overall increase of 0.49%. The price of PVC rose slightly this week.

II. Market Analysis

Product aspect: This week, the market price of PVC has been generally stable, rising slightly. Spot actual delivery atmosphere is general, businessmen wait and see cautiously, maintain just needed procurement, no hoarding intentions, increased sales pressure. With the continuous decline of social inventory of PVC and the influence of Daqing, the policy of environmental protection and production restriction, the market supply has been significantly tightened, the prices of merchants have steadily risen, and the ex-factory prices of some enterprises have risen slightly. The price of PVC is rising and falling, the trade tension between China and the United States is escalating, and there is no better support for it in the short term. The main contract of PVC will rebound if it continues to weaken. As of September 06, according to the data of business associations, the domestic mainstream price range of PVC is 6460-6850 yuan/ton.

Industry chain: raw materials, carbide ex-factory price temporarily stable, low inventory. According to the data of Business Association on September 6, the factory price of calcium carbide in Shaanxi is about 2750-2800 yuan/ton, Qinghai is about 2850 yuan/ton, Inner Mongolia is about 2900 yuan/ton, and Shizuishan is about 2800 yuan/ton. Ethylene material is relatively small, low-price transactions are the main, the overall transaction is not warm.

Industry: On September 6, the rubber and plastic index was 676 points, up 1 point from yesterday, down 36.23% from the highest point of 1060 points in the cycle (2012-03-14), up 17.36% from the lowest point of 576 points on December 21, 2015. (Note: Period refers to 2011-12-01 to date)

3. Future Market Forecast

PVC analysts believe that the current demand for PVC terminals is just the main demand, spot delivery is flat, the price is generally stable, it is expected that the short-term consolidation of the PVC market is the main, supply and demand game dominates the price trend.