The market is unstable; PVC continues to decline

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This post was last edited by Their crimes have finally come to light on 2015-7-11 at 14:38. Unstable market: PVC prices continue to fall. I. Market overview: Crude oil inventories in the United States for the week ending July 3, as reported on Wednesday (July 8) evening, are likely to decline again. However, during the Asian trading session, international oil prices failed to maintain the stability seen on July 7 and instead entered a downward trend. As of 14:10 Beijing time, U.S. WTI crude oil August futures fell by $0.45, or 0.86%, to $51.87 per barrel. In London, Brent crude oil August futures dropped $0.29, or 0.51%, to $56.56 per barrel. The spot market price for PVC is cautious; shipments are difficult to arrange, and prices continue to fall. II. Upstream raw materials: The Asian ethylene market continued to decline on July 8. CFR Northeast Asia dropped by $10 per ton, closing at $1,269.5–$1,271.5 per ton, while CFR Southeast Asia fell by $20 per ton, closing at $1,244.5–$1,246.5 per ton. Calcium carbide manufacturers are operating at low levels, with low production volumes, while the main ex-factory prices remain stable. Calcium carbide ex-factory price: Wuhai and Eers in Inner Mongolia, 2050 – 2150 ； Wu League area 2300-2350 ； Shizuishan area, Ningxia, 2050-2200 ； Zhongwei region 2200-2300 ； Shaanxi region 2050–2150 ； Gansu region: 2250-2300. III. Corporate Updates: Domestic calcium carbide-based PVC manufacturers maintain stable pricing, but sales at high prices are poor; some companies appear to keep prices stable while actually reducing them secretly. Type 5 ordinary calcium carbide material: the mainstream price at manufacturers in the surrounding areas of Inner Mongolia is 5,350–5,450 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 5,500–5,600 yuan per ton on credit ； In the Shanxi region, the mainstream ex-factory price is 5,600–5,650 yuan per ton, payable upon acceptance. Quotations for PVC manufacturers using the ethylene process remain stable; Taizhou Liancheng offers 6,000–6,050, while the price in US dollars is 840. Formosa Plastics in Taiwan quoted $860 per ton CFR the main port in China for July. Delivery available within a radius of 5900–6000 around Hanhua Ningbo. Suzhou Huasu 6000-6100 in cash. Formosa Plastics Ningbo is at 6050-6100, mainly for delivery orders. IV. Market Trends V. Quotations for the Main Domestic PVC Markets Unit: Yuan/ton Product Model East China Change South China Change North China Change Calcium carbide-based material SG-5: 5400-5500, -30; 5450-5750, -50; 5480-5600, -70. Ethylene-based material: 1000, 5900-5950, 0; 5920-5950, 0; 5700-5800, 0. The prevailing price in the East China PVC market is 5400-5500 yuan/ton. Changzhou Yihua 5400 for pick-up, Junzheng 5450, Shengxiong 5430. Shanghai Tianchen 5470, Type 3 5720, Type 8 5720. Hangzhou Zhongtai 5500, Sanlian 5400 for pick-up, Tianchen Type 5 5490, Type 3 5750, Type 8 5750. Ethylene material: 5900-5950. In the North China PVC market, Qilu S700 and Qilu S1000 from Qilu Chemical Industry City are priced at 5740–5780, with pick-up available on-site. Calcium carbide material 5480-5550 to be delivered. Delivered to Linyi area from 5500-580. Delivered to Hebei at 5450-5500. Pickup available at warehouse 5480-5550 in Tianjin area; for various models in Tianjin’s Dagu and LG locations, pickup is available at 5700-5800. The mainstream price for PVC in South China is 5450–5750; Zhongtai offers 5500, Yihua reports 5400, Junzheng sets the price at 5500, Yanhu also lists 5500, Dongxing charges 5550, Tianhu has a price of 5640, Shengxiong offers 5580, E’erong’s price is 5530, while Tianneng/Tianchen charge 5680; Sanyuan San’s price is 5750. Dagu 1000 is at 5920. V. Trading Landscape: The minutes of the Federal Reserve’s June FOMC meeting indicate that the vast majority of members prefer to obtain more information before raising interest rates. *The officials listed a series of reasons for being cautious about future prospects, including the situation in Greece, China’s economy, and U.S. consumer spending. “The Federal Reserve News Service said that the minutes from the June meeting indicate that the Fed may have to wait even longer before raising interest rates. General-purpose PVC saw a slight decline; the price in South China for the calcium carbide method in July was 5600 ； The price in East China is 5,500, while the price for the ethylene process is 5,930. The fundamentals in the spot market are poor, and there remains significant pressure to sell in the market. It is expected that the price of broad plastic will remain within a narrow range in the short term. VI. Outlook for the future: The PVC market is expected to continue its downward trend. Prices offered by upstream manufacturers remain stable, but due to fluctuations in the capital market, trading in the PVC spot market is cautious; many traders are holding back from making decisions and waiting to see what happens, as expectations for the future market are not positive. It is expected that PVC will remain volatile in the near term, or there may still be a trend toward lower prices.