Analysis of PVC raw material prices on June 3

Thread Content

Analysis of PVC raw material prices on June 3, 2015 – China Chemical Products Network. I. Brief market overview: There is a strong atmosphere of caution in the PVC market; traders tend to sell goods as needed, with prices remaining relatively stable overall, though there were slight declines in some cases. Downstream manufacturers are cautious about the market situation, showing low willingness to place orders, resulting in a sluggish trading environment in the market. II. Brief Overview of the Upstream Market: Crude oil futures prices rose on Tuesday. The settlement price for light sweet crude oil with delivery in July at the New York Mercantile Exchange increased by $1.06, to $61.26 per barrel, representing a rise of 1.8%. The settlement price for Brent crude oil, the global benchmark, at the European ICE Futures Exchange rose by 61 cents, to $65.49 per barrel, an increase of 0.9%. On Tuesday (June 2), prices in Asia’s ethylene market remained stable, with CFR Northeast Asia prices staying at 1409.5–1411.5 dollars per ton ； CFR Southeast Asia prices remained stable, closing at $1,399.5–$1,401.5 per ton. III. Market conditions in various regions: Market activity remains sluggish; traders continue to offer discounts to sell their goods, resulting in slight price fluctuations. PVC market prices in the Hangzhou area remained stable, with sluggish trading activity. For type 5 ordinary calcium carbide, the mainstream self-pickup pricing is generally around 5,800–5,900 yuan per ton, with the actual transaction price being slightly lower. The PVC market in the Tianjin area remained calm, with weak demand and modest trading activity, while prices stayed largely stable. Regular type 5 calcium carbide material, excluding taxes, costs 5,450–5,500 yuan per ton delivered; including taxes, the price is 5,800–5,850 yuan per ton delivered. Trading of PVC in the Linyi market remains sluggish; factory prices set by nearby companies have not changed much. There is a limited supply of goods in the market, resulting in low transaction volumes. Mainstream prices remain stable, with slight adjustments in the transaction prices for some actual orders. IV. Regarding the latest quotes, the price of PVC from Sichuan Jinlu remains stable. For Type 5 material, the price in Kawanuchi is 6,050–6,100 yuan per ton; for Type 3/8 material, it is 150–200 yuan per ton. The actual price can be negotiated. Heilongjiang Haohua’s PVC price has been reduced by 50 yuan per ton; the price for type 5 material at the factory is 5,950 yuan per ton, payable upon acceptance. The price of PVC from Inner Mongolia Junzheng Chemical remains stable after the adjustment. The current factory outlet price for type 5 calcium carbide in the province and in the northern regions is 5,750 yuan per ton. 5900 yuan/ton for pickup at ports in East China, and 5950 yuan/ton for pickup at ports in South China; 70% acceptance is required. The actual transaction price is determined on a case-by-case basis per order. There is pressure to sell at high prices. V. Market outlook: Downstream manufacturers show little interest in purchasing, and with weakening cost support, merchants have low confidence for the future; prices are becoming more flexible, and there is a strong atmosphere of caution in the market. It is expected that the short-term PVC market will remain characterized by weak fluctuations.