The market remains weak, with poor conditions for PVC

Thread Content

The market remains weak, with poor conditions for PVC. June 17, 2015, China Chemical Products Network. I. Market Overview: The August futures price of crude oil on the NYMEX in the United States rose by $0.45, or 0.8%, to $59.97 per barrel. The spot market for PVC is weakening, with suppliers being pessimistic about future trends. II. Upstream raw materials: On the 16th, styrene prices in Europe and the United States continued to decline. The FOB ARA styrene price in Europe closed at $1,302–$1,303 per ton, a decrease of $17 per ton. The FOB U.S. Gulf price in the United States was 1,236.4–1,247.4 dollars per ton, down by 6.6 dollars per ton. The receiving price for calcium carbide has dropped slightly, with most parties adopting a wait-and-see attitude. Prices of calcium carbide delivered to homes in various regions: 2510–2700 in Shandong region ； Tianjin area 2510 ； Hebei 2440-2540 ； Henan region 2400-2540 ； 2520 in the Shanxi region ； In Sichuan, it is 2750-2850; locally in Shaanxi, the price is 2210-2250. III. Corporate Updates: Today, domestic calcium carbide-based PVC manufacturers are operating relatively stably, though fluctuations are still possible in the short term. Type 5 ordinary calcium carbide material: the mainstream price at manufacturers in the surrounding areas of Inner Mongolia is 5,550–5,650 yuan per ton ； The mainstream acceptance price in Shandong region is 5,650–5,750 yuan per ton at the factory exit ； The mainstream ex-factory price in Hebei region is 5,580–5,750 yuan per ton upon acceptance ； In the Shanxi region, the mainstream ex-factory price is 5,700–5,800 yuan per ton, payable upon acceptance. Quotations for PVC produced via the ethylene method remain stable; in the North China region, companies such as Qilu Petrochemical, Tianjin Dagu, and LG Dagu offer their product at 5900–6100 yuan per ton at the factory gate. In the East China region, Huasu has reduced its prices, with current quotes ranging from 6200–6400 yuan per ton; discounts are available for large orders. Taiwan’s Formosa Plastics offers its product at $880 per ton CFR the main ports in China. IV. Market Trends: Domestic PVC market price quotes. Unit: yuan/ton. Product, Model, East China, Price change, South China, Price change, North China, Price change. Calcium carbide-based material, SG-5: 5670–5770, 0; 5650–5800, 0; 5570–5680, 0. Ethylene-based material: 1000, 6100–6150, 0; 6100–6150, 0; 5950–6050, 0. In the East China PVC market, the prevailing price is 5700–5800; Changzhou Yihua and Sanyuan offer prices of 5700, Yinglite offers 5730, and Zhongtai offers 5780. Shanghai Tianchen 5750, Type 3 6030, Type 8 6030. Hangzhou Zhongtai 5780, Beiyuan 5750, Yanhu 5720 for pick-up, Tianchen Type 5 5750-5800, Type 3 6030. Ethylene material 6150-6250. In the North China PVC market, Qilu S700 and Qilu S1000 from Qilu Chemical Industry City are available at 5930–5950 yuan, for pick-up in person. Calcium carbide material 5630-5650 has been delivered. Delivered to the Linyi area between 5640 and 5680. Hebei 5560-5630 delivered. Pickup available at warehouse 5580-5650 in Tianjin area; for various models in Tianjin’s Dagu and LG locations, pickup is available at 5950-6050. The mainstream price for PVC in South China is 5650–5850; Zhongtai quotes 5750, Yihua offers 5750, Junzheng sets the price at 5700, Yanhu is at 5650, Dongxing at 5680, Hanhua at 5700, Shengxiong at 5700, E’erong at 5850, Tieneng/Tianchen at 5850, and Sanlian at 5880. Dagu 1000 is at 6100. V. Exchange Market Conditions: The Federal Reserve will hold its Federal Open Market Committee (FOMC) meeting on June 16-17. The market expects the Fed not to announce any policy changes at this FOMC meeting, nor is it likely to give a clear signal regarding when interest rates will be raised. Although the market expects the Federal Reserve not to raise interest rates this month, economists believe it will start raising rates in September following the release of U.S. non-farm payroll data in May. General PVC faces a dilemma between upward and downward trends, with stable market prices. As of the close, the price for calcium carbide-based production in South China in June was 5,830 ； East China recorded 5,730, while the ethylene process price was 611. The fundamentals in the spot market remain bearish. VI. Market Outlook: Today’s PVC market saw moderate trading activity, with overall sales being weak. Industry experts hold a bearish outlook, and low-priced supplies available in the market are putting pressure on prices. Upstream PVC manufacturers find it difficult to sell their products at high prices and are forced to lower them. Businesses remain cautious due to a pessimistic market atmosphere, adjusting their shipments according to market conditions; it is expected that this weak trend will continue in the short term.