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PVC: weak demand and market deadlock

Views: 0     Author: Site Editor     Publish Time: 2022-04-17      Origin: Site

In terms of cost, after the Qingming Festival holiday, the overall trend of the domestic calcium carbide market is still weak. Due to the impact of the current domestic epidemic prevention and control, the logistics and transportation resistance is still heavy, resulting in the increasing shipping pressure of calcium carbide enterprises, the increasing inventory pressure of some enterprises, and the shortage of goods in the downstream due to poor logistics, resulting in the reduction of production load in some downstream and the weakening of demand.

Fundamentals: Recently, the PVC market price showed a downward trend of shock. In terms of supply, the overall fundamentals of PVC have not changed much. The manufacturers overhauled in the early stage have resumed production, and the market supply is still sufficient. After the Qingming holiday, due to the weak operation of the futures disk, the market trading atmosphere is relatively cold. The manufacturers and traders mainly held up the price at the beginning of the week, but due to the lack of active terminal purchase, the manufacturer's price has been falling in a narrow range one after another, The manufacturer still focuses on pre-sale. Because the manufacturer's inventory is relatively low, there is no pressure on sales, and the supply side still maintains a loose situation; In terms of demand, due to epidemic control factors in East China, North China and other regions, the overall start-up of terminal plastic plants remains low, the logistics and transportation in many places are still blocked, the demand side still maintains weak operation, and it may be difficult to improve significantly in the short term.

Overall, the supply side of the PVC market is relatively loose, while the weak situation on the demand side remains unchanged. The price of raw material calcium carbide continues to decline. It is expected that the PVC market will be adjusted in the short term.


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