Daily report: PVC Paste Resin Prices Decline Amid Weak Demand

May 12: Today, the domestic PVC paste resin market prices declined significantly. The average market price for leather-grade PVC paste resin stood at RMB 6,878 per ton, down RMB 262 per ton (a decrease of 3.67%) from the previous trading day; the average market price for glove-grade PVC paste resin was RMB 6,988 per ton, down RMB 252 per ton (a decrease of 3.48%) from the previous trading day. Today, the PVC paste resin market performed weakly, with mainstream market prices falling across the board. Traders followed market trends, and trading activity remained subdued. Currently, downstream production costs remain high, and operating rates are largely maintained at low levels, suppressing downstream demand and procurement enthusiasm for PVC paste resin. Export demand for finished goods remains sluggish, resulting in accumulated inventories. Under the fundamental imbalance of oversupply relative to demand, PVC paste resin producers have lowered quotations by RMB 200–300 per ton today to expedite inventory clearance and secure transactions; room for negotiation exists on actual orders. Production facilities continue operating stably at normal output levels, ensuring ample supply, while advance order booking remains modest.

In terms of price, on May 12, the average price of glove material including tax and freight in the East China region was around 7050 yuan/ton, while in the South China region it was around 7150 yuan/ton, and in the North China region it was around 6950 yuan/ton. The average price of leather material including tax and freight in the East China region was around 6950 yuan/ton, while in the South China region it was around 7000 yuan/ton, and in the North China region it was around 6825 yuan/ton.

Raw materials: Today, calcium carbide market prices remained stable, while VCM prices decreased by RMB 100 per ton, weakening the cost base for the PVC paste resin industry.

Supply side: There are no recent plant maintenance schedules, and the supply of PVC paste resin is abundant.

Future market forecast: The production cost of downstream product manufacturers of PVC paste resin remains at a high level and is unlikely to return to normal in the short term. The start-up of downstream facilities has increased limitedly, and the possibility of demand growth is not high. However, the cost side of PVC paste resin still has a supportive effect. Therefore, it is expected that the price of PVC paste resin will remain stable tomorrow, with transactions negotiated on a case-by-case basis.