PVC maintained a strong support in the later period, and prices had a downward trend

Since the second half of last year, downstream product enterprises have been trapped by the sharp rise in PVC prices, and once raised the price of terminal products, but the transmission of residents' consumption is relatively difficult, and the downstream price adjustment resistance is greater
.
Longzhong Information learned from a downstream packaging factory that the current order continuity is very good, but because the price of raw materials is too high, the finished products produced have serious losses
.
The biggest concern now is when the price will come down
.

In the case of the market's general expectation that prices will fall, some enterprises will not fall but rise
.
Supply tightness
due to overhauls.
This is one reason
why it is often heard going into May.
Because PVC is very profitable, upstream production enterprises choose short-term inspection, and immediately enter the hot weather in June, and the maintenance of most enterprises is postponed in May, including the normal planned maintenance
of some enterprises.
Because from January to April, PVC exports were large, and some of the volume that should have been sold domestically was transferred to foreign trade, resulting in a decrease in domestic PVC supply, and in May, affected by the epidemic in India, the external price fell and the export window began to close
.
However, the supply gap caused by domestic maintenance is still large, and Longzhong estimates that the maintenance loss in May is about
400,000 tons.

Most of the pre-sale sources of ethylene enterprises in May have been sold out, and some enterprises without pre-sales are also tight
.
At present, the international community is generally optimistic
about economic recovery.
The pressure of the enterprise in the month is not large, and the downstream orders are relatively stable, and the pressure on shipments is not large
.

For the increase in global supply caused by the recovery of foreign installations in June, and the increase in supply caused by the end of domestic equipment maintenance, it looks more like to make up for the supply gap in the early stage, and social inventory and enterprise inventory are generally low, and they are still in a state of destocking at high prices, and the downstream procurement capacity is acceptable
.
At the same time, Taiwan's Formosa Plastics quotation fell from $150 / ton at the beginning to $200 / ton later, because of the delay again, the market speculation range can reach $300 / ton
.
The downtrend has been set, but the exact magnitude is pending the release of a clear price
.
On the whole, PVC prices in June had a downward trend, but there was a high probability that prices would remain firm in May supported by a
variety of favorable supports.