Today, the PVC market in some regions of China has slightly declined.
The domestic PVC market in East China mostly has shown a narrow downward trend. Specifically, the PVC market in Shanghai has slightly declined compared with yesterday. Due to the volatile opening of futures and insufficient favorable factors in the spot market, the overall transaction price has shown a downward trend. As the Spring Festival approaches, small and medium-sized downstream processing manufacturers in the surrounding areas of Shanghai have started to take a break one after another. Recently, these manufacturers have expressed a willingness to reserve raw materials, but mostly cautious and hesitant in actual operation. Meanwhile, as the average trading price of PVC has loosened in Yuyao, a city in Zhejiang province, some downstream customers purchased on dips in a good negotiation atmosphere. At present, in the context of abundant market supplies, PVC social inventory has accumulated at a high level. Downstream product enterprises now work at a low utilization rate, while carefully controlling their own raw material and finished product inventory, resulting in significant sales pressure on those PVC manufacturers. In Changzhou, due to insufficient favorable support for the local PVC market, the average trading price has fallen. Again, affected by the volatility of futures, local producers lacked confidence in raising their quotations when the PVC market has been dominated by a wait-and-see sentiment among downstream players.
The domestic PVC market has decreased in South China. Here we take Foshan, a city in Guangdong province as an example. The price basis difference of traders has increased in a sluggish trading atmosphere of the local PVC market, leading to a continued downward shift in the market′s average trading price. In the context of weak downstream demand and sustained stability of deliveries in the region, local inventory pressure continues to grow.