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PVC prices re-strengthened, and the future market is likely to show a decline and then rise

 Last Update: 2022-12-22
 Source: Internet
 Author: User

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tungsten carbide price

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Last week, PVC futures broke through a new high, which significantly boosted the spot market, but downstream product companies were strongly resistant to high prices, and the receipt of goods maintained rigid demand
.
Affected by the restricted electricity policy, calcium carbide prices rose again, with strong cost support, low inventories of production enterprises, and firm factory
quotations.
It is expected that the PVC market will remain volatile in the short term
.

PVC

PVC currently presents a pattern of supply and demand, and the supply side is the main contradiction
.
The supply contraction caused by power cuts is expected to ease
after the summer.
Demand is currently weakly underpinned by the inhibitory effect of high prices in the context of the off-season
.
However, there is an expectation
of seasonal demand season in the future.
PVC has a high probability of gradually moving from supply and demand to double supply
and demand.

Since the current valuation (absolute price) of PVC is too high, the suppression of demand is very obvious, so demand can only be released
by falling prices.
It is expected that the deduction path of PVC prices in the future market is: with the easing of power restrictions and the transfer of positions in the plate, the price goes down the valuation repair logic (requiring calcium carbide to be coordinated), the price decline releases rigid demand, and the price strengthens again in the seasonal demand season
.
That is, the probability of PVC in the future market will show first decline and then rise
.

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