PVC prices are weak and volatile, and there is a downward risk in the future

In January, the demand in the off-season is expected to weaken, especially the poor transportation in some parts of the north, and some downstream enterprises stopped work in advance for holidays, resulting in a decline in operating rate, weakening the support for PVC demand, coupled with the decline in the price of raw material calcium carbide, there are fewer maintenance enterprises, sufficient market supply, weak trading atmosphere, and enterprises reduce prices and shipments to find benefits
.
The second half of the month ushered in an inflection point, mainly due to the rebound of futures prices, and at the same time due to repeated public health events in some areas, poor transportation in local areas, limited arrival resources, coupled with an increase in exports, there was a certain demand for stocks downstream years ago, resulting in a decline in inventory and rising PVC prices
.
Towards the end of the month, the market returned to calm and the trend was relatively firm
.

Data show that in December 2020, domestic PVC production was 1.
914 million tons, up 6.
0% compared with the same period last year; In 2020, the cumulative domestic PVC output was 20.
74 million tons, an increase of 3.
3%
compared with the same period last year.
In December, China's total imports of PVC pure powder were 32,000 tons, down 36% from November; China's exports of pure PVC powder in December were 76,000 tons, down 29% from November but up 204%
compared with the same period last year.

In terms of spot, the mainstream quotation range of domestic PVC5 calcium carbide is around 6900-7400 yuan / ton
.
The mainstream of PVC5 calcium carbide in East China is 7300-7400 yuan / ton nearby, the mainstream of PVC5 calcium carbide in Hebei is 7070-7130 yuan / ton is delivered, the PVC5 calcium carbide range in Hangzhou is 7270-7400 yuan / ton, the mainstream of PVC5 calcium carbide in Changzhou is 7300-7450 yuan / ton, the mainstream price of PVC ordinary calcium carbide in Guangzhou is 7330-7550 yuan / ton, and the market quotation in various places does not change much, fluctuating slightly
。

At present, the market has calmed down, entering February, the downstream years of shutdown and holiday, demand side support continues to decline, the trading atmosphere has become weak, the market negotiation price is stable and dark, it is expected that in the short term PVC prices will be stable and small, and there is a downward risk
in the future market.