Thread Content
Analysis of PVC raw material prices on September 23, 2016. September 23, 2016. I. Brief market overview: The PVC market remained in a state of consolidation at high levels. Merchants are quite enthusiastic about taking action, while downstream buyers are cautious about sources at high prices; overall, the market atmosphere for transactions is average. II. Brief overview of the upstream market: International crude oil futures prices continued to rise on Thursday. U.S. WTI crude oil November futures closed up $0.98, or 2.16%, at $46.32 per barrel ； November futures for Brent crude rose by $0.82, or 1.75%, to $47.65 per barrel. Asian ethylene prices fell on Thursday (September 22), with CFR Northeast Asia prices dropping by $5 to close at $1,174.5–$1,176.5 per ton ； The CFR Southeast Asia price dropped by $5, ending at $1,044.5–$1,046.5 per ton. III. Market conditions in various regions: Market activity is sluggish, with prices remaining largely stable with only minor fluctuations. Supply in Shanghai’s PVC market is limited; traders are holding prices high when selling, resulting in sluggish trading activity. The quoted price for type 5 mainstream self-pickup is between 6,850 and 6,900 yuan per ton; it’s difficult to find lower prices, though higher prices are also available. The PVC market in the Guangzhou area is facing a shortage of supply, while demand from downstream sectors remains stable; many suppliers have stopped selling their products, leading to further price increases. The prevailing transaction price for ordinary Type 5 calcium carbide is 6,850–6,880 yuan per ton, with delivery at the supplier’s site. Tianye’s price is slightly higher; Junzheng/Yili’s Type 5 calcium carbide costs 6,860 yuan per ton for delivery at the supplier’s site, while Tianye’s Type 5 product is priced at 6,880 yuan per ton. In the Hangzhou area, the market price of PVC still shows an increase of 50 yuan per ton. The standard price for type 5 calcium carbide material, with delivery at the supplier’s site, is 6830–6900 yuan per ton; slightly higher prices are also available, while low prices are hard to find. IV. Regarding the latest quotes, Shandong Dongyue PVC has resumed full-scale operations; due to a shortage of supply, prices have increased. Type 5 material is priced at 6,800 yuan per ton upon delivery, subject to acceptance. The 300,000-ton PVC production facility in Yushui, Shanxi is currently operating at full capacity; shipments are satisfactory, there are many orders, and the price has increased by 110 yuan per ton. The ex-plant price for Type 5 is 6,410 yuan per ton; the final price is subject to negotiation. The PVC production at Yihua in Inner Mongolia is operating at near full capacity; there is no inventory available, and prices remain high. Type 5 East China port acceptance and pick-up: 6,600 yuan/ton; price to be negotiated. V. Future market outlook: The speculative atmosphere in the market remains strong, with traders’ quotes continuing to rise fluctuately. However, there are no signs of improvement on the demand side; especially with the rapid rise in prices, downstream factories are more hesitant to make purchases, resulting in increased difficulties in closing deals at high prices in the market. It is expected that the short-term PVC market will remain at high levels. (Excerpted from China Chemical Products Network)