PVC market is intertwined

In August, the favorable negative factors of the domestic PVC market were intertwined, and the overall transaction center of gravity developed upwards. Taking calcium carbide method five materials as an example, the average price at the end of the month compared to the beginning of the month was 100 to 150 yuan. Comprehensive analysis, August domestic PVC market characteristics and influencing factors mainly include the following points:

First, prices fluctuate frequently, but they still show upward trend. According to the statistics of China's chlor-alkali network, the average price of calcium carbide material at the beginning of the month was 7,097 yuan, and the average price at the end of the month climbed to 7,215 yuan; the price of vinyl material rose from 7,353 yuan at the beginning of the month to 7,413 yuan. It can be seen that although the price of PVC has stagnated in the middle of the month, it has even seen a slight downward adjustment several times, but it has finally achieved a spiral.

Second, the downstream demand still does not reflect the recovery growth. In August, although domestic downstream product companies acknowledged the slight price increase stage by stage, they were always in the state of buying and not actively picking goods. In addition, the high temperature in East China is particularly prominent this month. In the case of processors of downstream small workshops, due to the impact of power restrictions, the situation of stopping three times a week or stopping four times a day three times a day occurs. From this point of view, the downstream demand does not belong to the recovery rebound. The fact that the PVC is not surplus in the market but is not out of stock may not be able to stimulate the downstream companies to prepare for stocks.

Third, the ups and downs of the PVC** market have an intuitive impact on the spot market. In August, the main contract of PVC** fell by a maximum of 105 yuan (August 20), and the biggest increase was 155 yuan (August 25). Affected by this, PVC spot trading atmosphere also appears different characteristics of the sunny.

Fourth, the price of calcium carbide raw materials continues to push up. According to the national price monitoring from calcium carbide to the factory, the average purchase price of calcium carbide in the country at the beginning of the month was RMB 3,389, and the average price at the end of the month was RMB 3,444, with an average increase of RMB 55. In some regions, the increase was around RMB 100. The rise in the price of calcium carbide has increased the production cost of PVC, which is one of the reasons why PVC companies insisted on selling high prices in August.

Fifth, PVC traders' reluctance to sell and speculation has always been accompanied by changes in the August market. Since the amount of PVC in southern China's consumer destination is not large, the stocks of traders are mostly lower than normal positions in the past. Therefore, the attitude of reluctant sellers to wait for the uptrend has also formed a persistent force for the market.

After entering the month of September, the domestic PVC market will enter the peak season for consumption according to the convention. The end of summer power restriction for downstream companies can also expand PVC consumption to some extent. However, it should be noted that the news about limiting the production of calcium carbide in the northwest region has continued to spread. It is still premature to make a conclusion on whether the use of calcium carbide raw materials as a double-edged sword to boost the cost of PVC or supply shortages has limited PVC production.