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Analysis of PVC raw material prices on April 18, 2017. April 18, 2017. 1. Market overview: The PVC market remained weak, with some prices continuing to decline. Futures opened lower and continued to decline; some companies in the oil and petrochemical sector reduced their ex-plant prices. Traders lost confidence in the future market, so most of them chose to sell at lower prices as well. Demand from downstream factories is weak, there is little enthusiasm for making inquiries, and overall market transaction activity is average. 2. Key price information: Domestic PVC petrochemical ex-factory prices as of April 18. Grades, manufacturers’ today’s prices, yesterday’s prices, and price changes. SG3-5: Henan Yuhang – 5700 to 5800, with a change of -100; SG5: Jining Jinwei – 5900 to 5950, with a change of -50; SG3-5: Jinxi Chemical – 5800 to 6000, with a change of -200; S1000: Qilu Petrochemical – 6150 to 6200, with a change of -50; S700: Qilu Petrochemical – 6300 to 6350, with a change of -50; S-60: Taishu Ningbo – 6650 to 6850, with a change of -200; S-65: Taishu Ningbo – 6600 to 6800, with a change of -200; S-70: Taishu Ningbo – 6800 to 6900, with a change of -100; SG3-5: Yunnan Yanhua – 6050 to 6100, with a change of -50. 3. Plant operations: Status of PVC production plants as of April 18. The new 360,000-ton PVC plant owned by Inner Mongolia Junzheng Chemical will be shut down for maintenance starting on the 16th, with maintenance expected to last 7–10 days. There is little inventory pressure on enterprises; new prices will be announced today. Heilongjiang Haohua’s plant has two production lines: one operates at full capacity 24/7, while the other is operational at 50% capacity, producing around 500 tons per day; shipments are moderate. The 120,000-ton production line at Ningxia Yinglite’s first plant is operating normally. The 120,000-ton production line at the other plant will be shut down temporarily for 3-4 days starting from the 13th, with operations expected to resume gradually today. The Leshan Yongxiang plant is operating at near full capacity, with a daily production of 300–320 tons; prices are set according to market conditions. The Jiantao plant in Hengyang, Hunan, is operating at around 60% of its capacity, with a current daily output of about 300 tons. The PVC plant of JinYuyuan in Ningxia has a production capacity of 250,000 tons; it is scheduled to shut down for maintenance on April 26th for 5 days. The plant in Yushui, Shanxi, is currently under maintenance, with a planned duration of 3–5 days; prices for Type 5 material seals are not available at present. The Tianyuan plant in Yibin is operating at 70% of its capacity, with a daily production of 700 tons, and its prices have been reduced. 4. Upstream impacts: There is uncertainty regarding whether OPEC will extend its production cut agreement, and oil prices dropped on Monday. WTI crude oil futures fell by $0.53, or 1.00%, to $52.65 per barrel. Brent crude oil futures fell by $0.53, or 0.95%, to $55.36 per barrel. On April 17, prices for some products in the Asian ethylene market rose; CFR Northeast Asia increased by $10 per ton, settling at 1179.5–1181.5 dollars per ton, while CFR Southeast Asia remained stable at 1049.5–1051.5 dollars per ton. Recently, demand in emerging markets has remained stable in China, and some end-users are seeking spot ethylene. Currently, methanol-to-olefins plants are operating at reduced capacity to address the supply shortage. 5. Market analysis by region: In the Shanghai area, PVC market quotes continued to decline, with rather sluggish trading activity. The quoted price for type 5 mainstream self-pickup is 5,650–5,750 yuan per ton, with prices negotiable upon agreement. The ex-works price for Tianchen Type 5 is 5,750 yuan per ton; for Tianye Type 3, it’s 6,050 yuan per ton; and for Tianchen Type 8, it’s 6,000 yuan per ton. However, transactions at these high prices are difficult to conclude. The PVC market in the Guangzhou area remained sluggish, with weak demand and low transaction volumes. Futures prices declined steadily, merchants were cautious, and spot prices continued to fall. For regular type 5 calcium carbide, the mainstream price is 5,700–5,750 yuan per ton, with pickup available. Salt Lake Type 5 is priced at 5,700 yuan per ton for pick-up in person; Dongxing/Xinfaa/E’erong Type 5 is priced at 5,730 yuan per ton for pick-up in person; Zhongtai/Junzheng/Yili Type 5 is priced at 5,750 yuan per ton for pick-up in person; Zhongtai/Beiyuan Type 8 is priced at 6,000 yuan per ton for pick-up in person ； Ethylene material prices have declined. The prevailing prices are 6,300–6,400 yuan per ton for ex-works delivery; the price for Dagu type 1000 is quoted at 6,350 yuan per ton for ex-works delivery. 6. Market outlook: Futures prices are expected to continue declining from current low levels, while spot market activity shows no signs of improvement. Market demand is weak, but retailers still perceive a strong business atmosphere. The PVC market is expected to continue its downward trend tomorrow. (Excerpted from China Chemical Products Network)