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A Weekly Overview of China¡äs PVC Market

2024-1-19


This week, the domestic PVC market rose first and then fell, with the price changes basically synchronized with the futures market performance. Specifically, the average price slightly increased early this week, and remained basically stable after a decline in Thursday. In terms of supply and demand, integrated producers in Northwest China and ethylene-based PVC manufacturers in coastal areas have worked at a higher operating rate, while chlor-alkali producers in Central and North China that purchased calcium carbide from other regions continue to maintain lower utilization rates. The operating rate of domestic PVC plants remains stable, thus ensuring abundant supply of goods. As a growing number of downstream processing plants have been shut down for holidays since mid-January, the market demand for PVC has continued to shrink, leading to sales difficulties among those manufacturers and traders and further depressing the market participation. This week, the quotes in main distribution center have been mainly based on futures pricing. In the export market, there has been a slight demand recovery in such consumer areas as India recently, bringing a larger trading volume to domestic production enterprises. Therefore, when some manufacturers have slightly increased their export quotations, the market players will keep a close eye on the number of potential orders to be signed.