Analysis of PVC raw material prices on November 4th

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Analysis of PVC raw material prices on November 4, 2016. November 4, 2016. I. Brief market overview: The PVC market is in a favorable state, with some prices continuing to rise steadily. Current downstream demand remains relatively weak; factories are not active in making purchases, and there is some resistance to rising raw material prices. Currently, the mainstream price for ethylene material is around 7,900–8,200 yuan per ton, while the mainstream price for type 5 calcium carbide material is around 7,900 yuan per ton; prices can be negotiated based on actual transactions. II. Overview of the upstream market: International crude oil futures continued to decline on Thursday, November 3; U.S. WTI crude oil futures for December fell by 1.50%, ending at $44.66 per barrel. January futures for Brent crude fell 1.09% to $46.35 per barrel. On Thursday (November 3), Asian ethylene prices declined slightly, with CFR Northeast Asia prices remaining stable at 1,029.5–1,031.5 USD/ton ； The CFR Southeast Asia price dropped by $15, ending at $994.5–$996.5 per ton. III. Market conditions in various regions: Market activity is sluggish, with prices remaining largely stable with only minor fluctuations. Prices in the PVC market in the Hangzhou area remain high; supply is limited, and some prices continue to rise. The mainstream self-pickup price for type 5 ordinary calcium carbide is 7,650–7,800 yuan per ton, with suppliers reluctant to sell at lower prices. The PVC market in the Guangzhou area is facing supply constraints; transactions remain stable while prices stay firm. Stock is limited; most sellers are pre-selling goods for late November and December, while the prices of some low-cost items continue to rise. The atmosphere in the PVC market of Qilu Chemical Industry City is fairly good, with steady transactions and continuing price increases; actual prices are subject to negotiation. IV. Latest Quotations 1. Petrochemical Quotations: The PVC production facility in Wuhai, Inner Mongolia is operating at 90% capacity. The supply is limited, so the price has been increased by 150 yuan per ton. Type 5 material is priced at 7,300 yuan per ton upon delivery, subject to acceptance. Sichuan Jinlu PVC is operating at full capacity; due to limited supply, the price has been increased by 50 yuan per ton. For Type 5 material, the price in Kawanuchi is 7,650 yuan per ton; for Type 3/Type 8, it is 200 yuan higher per ton. Prices can be negotiated based on actual order quantities. The PVC production plant at Taishan Salt Chemical is operating normally; due to limited supply, prices have risen. Type 5 material costs 7,600 yuan per ton at the factory; the actual price can be negotiated. 2. Quotations from the mall: As of 3 p.m., the prices of certain grades of PVC in stock at Zhongsu increased by 500 yuan per ton, while the lowest price for RB-03/Shanghai Chlor-Alkali was 12,000 yuan per ton. V. Market outlook: Petrochemical prices will continue to rise; coupled with tight supply, suppliers will maintain high prices. End-users are cautious with inquiries; actual orders are discussed on a case-by-case basis. It is expected that the short-term PVC market price will remain at high levels. (Excerpt from China Chemical Products Network)