Lacking positive factors, the PVC market continues to decline weakly

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Lacking positive factors, the PVC market declined weakly. October 16, 2015, China Chemical Products Network. I. Market overview for this week: This week, the domestic PVC market saw only minor fluctuations. Sales were poor in the East and South China regions, with prices falling. In North China, prices rose slightly from low levels. Enterprises in Shandong operated at limited capacity, leading to a slight shortage of supply in that region and thus a modest increase in market prices. Demand from end-users was weak, and transactions in the market remained sluggish. Traders across different regions are cautious about the future outlook. By the end of this weekend, the mainstream prices for SG-5 produced by the calcium carbide method in East China and South China were 5100–5250 yuan per ton, a decrease of 50 yuan per ton compared to last week ； For the Ethylene Process Type 1000 model, the prevailing price in East China and South China is 5,600–5,700 yuan per ton, with prices remaining stable. Quotations for the main domestic PVC market. Unit: yuan/ton. Product model, price changes in East China, price changes in South China, price changes in North China: Calcium carbide-based material SG-55: 100-5260-30; 500-5300-80; 500-5120, with an increase of +10. Ethylene-based material: 10,000; 5,600-5,700; 0; 5,600-5,700-30; 5420-5,540. II. Manufacturer updates: This week, some domestic PVC manufacturers raised their quotations slightly, but demand remained weak. Downstream buyers were cautious about placing orders, and after making minor replenishments they reverted to a wait-and-see attitude. Sales by these manufacturers were average after the price increases, and in some cases quotations were later reduced back to previous levels. Type 5 ordinary calcium carbide material: the mainstream ex-factory price in the areas surrounding Inner Mongolia is 4,870–4,950 yuan per ton ； The mainstream acceptance price in Shandong region is 5,100–5,200 yuan per ton at the factory exit ； The mainstream ex-factory price in Hebei region is 4,950–5,150 yuan per ton on credit ； In the Shanxi region, the standard ex-factory price is 5,050–5,100 yuan per ton, payable upon acceptance. The prevailing delivery price for enterprises using the ethylene method in the East China region is 5,650–5,700 yuan per ton. The prevailing delivery price for enterprises using the ethylene method in the East China region is 5,650–5,700 yuan per ton. The local ex-factory price in North China is 5,400–5,600 yuan per ton, payable in cash at the time of delivery. III. Upstream raw materials: The Asian ethylene market returned to stability after a rise this week. At the beginning of the week, the continuous increase in international crude oil prices led to an increase in demand for ethylene. Meanwhile, due to maintenance activities at some refining companies, the supply of ethylene was relatively tight, which drove up its price. However, downstream buyers have limited capacity to accept high prices for ethylene; as a result, there was resistance to further price increases and prices returned to stable levels. As of this Thursday, the CFR Northeast Asia price was 934.5–936.5 dollars per ton, while the CFR Southeast Asia price was 899.5–901.5 dollars per ton. Market participants are mostly cautious and waiting to see, resulting in weak trading activity. Market rumors suggest that ethylene supplies from Brazil or the United States may flow into the market. In addition, the ethylene plant at Lotte Chemical in South Korea remains under maintenance, which is expected to last around 30 days. This week, the price of calcium carbide remained generally stable; although some purchase prices were adjusted downward flexibly, this did not affect the overall situation. The arrival of calcium carbide at PVC manufacturers is uneven; some companies still have a large amount of calcium carbide waiting to be unloaded, resulting in slow unloading speeds, while in other cases the arrival of calcium carbide is relatively normal. Currently, companies are mainly focusing on recent changes in the volume of calcium carbide deliveries, while price adjustments remain stuck between further price cuts and maintaining stability. The operation of calcium carbide manufacturers has remained relatively stable, with no significant instances of shutdowns to avoid risks. There is still an overall surplus of calcium carbide supply, and the prices at the factory level remain low; however, there are no more noticeable cases of price cuts as a promotional tactic. IV. Statistics on maintenance activities of domestic enterprises. Unit: 10,000 tons. Status of production capacity shutdowns in manufacturing enterprises in various regions. Statistics on enterprises undergoing maintenance recently: Jinwei in Jining, North China – stopped production due to a malfunction on September 28; resumption of operations is planned for the end of October. Xinfafa in Shandong, North China – the 200,000-ton production unit stopped for maintenance on October 6; maintenance is expected to last 10 days. Tianye in Xinjiang, Northwest China – the Dayi plant stopped for maintenance on September 21; the date of resumption of operations is unknown. Yushe in Shanxi, Northwest China – stopped for maintenance on October 7; maintenance is expected to last 10 days. Haohua in Siping, Northeast China – production was halted again on September 6; the date of resumption of operations is unknown. Yinglite in Northwest China – will be under maintenance for 8 days starting from October 12. Plans for subsequent maintenance activities: In the Ordos region in the northwest, 40 plants are scheduled to suspend operations for maintenance starting from October 20th. V. Market outlook: This week, the domestic PVC market has shown a weak trend. Due to an imbalance between supply and demand, trading activity has continued to decline. As production in the main producing areas remains stable, shipments to key distribution areas such as East China and South China continue unabated. Traders are relatively pessimistic about the future market, leading to frequent instances of selling products at reduced prices. The PVC market is expected to remain in a range-bound pattern at lower levels.