Market transactions are generally steady, with PVC prices remaining stable

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Market transactions remain steady; PVC prices stay stable. September 29, 2016. I. Market overview: On September 28, U.S. WTI crude oil futures for November rose by 2.38%, closing at $47.05 per barrel. November futures for Brent crude rose 2.72 to $48.69 per barrel. Today, the domestic PVC market is showing weak trends. Although there is not much available in stock across various markets, as the National Day holiday approaches, the enthusiasm of end-users for purchasing has diminished, resulting in relatively slow transaction activity in the market. The prices of some grades have slightly dropped, with quotes seeing a minor decline. Upstream manufacturers have low inventory levels, which keeps prices firm and supports high market prices; it is expected that prices will remain high tomorrow as well. II. Upstream raw materials: On September 28, prices of ethylene in Asia remained stable, with CFR Northeast Asia at 1154.5–1156.5 dollars per ton, and CFR Southeast Asia at 1039.5–1041.5 dollars per ton. The price of calcium carbide remained stable; companies had limited inventory, shipments were steady, and there were minimal adjustments to the ex-factory prices. Local calcium carbide ex-factory prices: 2,400–2,500 yuan/ton in Wuhai and Ordos areas of Inner Mongolia ； 2,400–2,450 yuan/ton in the Shizuishan area of Ningxia ； Zhongwei region: 2,500–2,550 yuan/ton ； 2,400–2,500 yuan/ton in the Shaanxi region ； In Gansu region, it is 2,500–2,600 yuan per ton. III. Industry Updates: PVC manufacturers using the electric arc furnace method are holding prices when selling their products. Type 5 ordinary calcium carbide material: the mainstream ex-factory price in the areas surrounding Inner Mongolia is 6,250–6,400 yuan per ton ； The mainstream acceptance price in Shandong region is 6,450–6,600 yuan per ton at the factory exit ； The mainstream ex-factory price in Hebei region is around 6,450 yuan per ton on credit ； In the Shanxi region, the mainstream ex-factory price is 6,600–6,750 yuan per ton, payable upon acceptance. Overall, domestic PVC manufacturers using the ethylene process are currently mostly operating at a stable level. Currently, in the North China region, the price at the factory for products from Qilu Petrochemical, Tianjin Dagu, and LG Dagu is 6,800–7,000 yuan per ton. In the East China region, the delivery price is 6,900–7,000 yuan per ton. Taiwan’s Formosa Plastics has quoted a price of 890 US dollars per ton CFR the main ports in China for October. IV. Market Trends: Quotations for the domestic mainstream PVC market. Unit: yuan/ton. Product models: East China – price changes; South China – price changes; North China – price changes; Northwest China – price changes. Calcium carbide-based materials: SG-5: 60,000–69,800 yuan/ton; 69,300–70,000 yuan/ton; 66,500–68,000 yuan/ton; 62,500–64,000 yuan/ton. Ethylene-based materials: 10,000 yuan/ton; 71,000–72,500 yuan/ton; 71,500–72,500 yuan/ton; 68,500–69,500 yuan/ton. For ordinary Type 5 calcium carbide materials in East China, the prevailing quote is 6,850–6,900 yuan/ton; Zhongtai Type 5 costs 6,920 yuan/ton, Beiyuan 6,900 yuan/ton, Dongxing 6,840 yuan/ton, Yusheng 6,850 yuan/ton, Hubei Yihua 6,870 yuan/ton, Wuxi Yanhu 6,880 yuan/ton, and Tianchen Tianneng Type 5 costs 6,950 yuan/ton ； Qilu material S1000 is priced at 7,050 yuan per ton ex-warehouse, while S700 is priced at 7,200 yuan per ton. In the North China PVC market, at Qilu Chemical Industry City, the price of Qilu S700 is 7,200 yuan per ton, while the price of S1000 is 7,150 yuan per ton, with delivery available upon pickup. Calcium carbide is delivered at around 6,530–6,570 yuan per ton. It is delivered in the Linyi area at around 6,720 yuan per ton. In Hebei, it can be picked up at around 6,630 yuan per ton. Pickup from warehouse in Tianjin area at around 6,670 yuan per ton. The mainstream price for Type 5 calcium carbide process PVC in the South China market is 6,750–6,850 yuan per ton ； Junzheng new factory: 6,870 yuan/ton ； Yili: 6,880 yuan per ton; Salt Lake: 6,820 yuan per ton ； Tianhu: 6,900 yuan per ton ； Tianchen, Tianneng: 6,950 yuan/ton ； Tianye Type 3: 7,150 yuan per ton ； Tianchen Type 8: 7,050 yuan per ton ； Dagu 1000 is out of stock; the price for 700/800 is 7,150 yuan per ton ； 1300 is quoted at 7,250 yuan per ton. V. Transaction Review: Today, the PVC market on the Plastics Exchange showed an upward trend with fluctuations; traders in various price ranges shifted their positions to different months during trading hours ； In September, transactions occurred only in South China ； In October, transaction volumes were high in South China and North China, with settlement prices remaining at high levels ； By the close of trading, the settlement price for September 5th in South China was 6,960 yuan per ton (the same unit is used below), an increase of 489 yuan ； The settlement price in South China in October was 7,119 yuan, an increase of 230 yuan ； The settlement price in East China is 6,900 yuan ； The settlement price in North China is 6,501 yuan, up by 1 yuan ； The settlement price for the ethylene method is 6,900 yuan. Fundamentals: The domestic PVC market remained weak today. Although there is not much available in stock across various markets, as the National Day holiday approaches, the enthusiasm of end-users for purchasing has diminished, leading to relatively slow transaction activity in the market. Prices for some grades have slightly dropped, with quotes seeing a modest decline. Upstream manufacturers have low inventory levels, which keeps prices firm and supports high market prices; it is expected that prices will remain high tomorrow as well. VI. Future market forecast: Based on the current supply and demand situation in the market, most companies are facing shortages of supplies; some large enterprises have already sold their supplies up to mid-October, and inventory levels in the East China and South China regions are also low. However, futures prices have declined amid volatility; downstream companies are resistant to high prices, and traders are becoming more cautious. It is expected that PVC prices will remain stable in the short term. (Excerpted from China Chemical Products Network)