[Morning PVC Alert] PVC Market Struggles to Find Positive News, Continues Weak Performance

I. Points of Attention

1 "[Longzhong]" 8/28: The instability of the Russia-Ukraine situation persists, combined with the ongoing benefits of the traditional U.S. fuel consumption peak season, leading to an increase in international oil prices. The NYMEX crude oil futures contract for October rose by $0.45 per barrel to $64.60, a month-on-month increase of 0.70%. The ICE Brent crude futures contract for October rose by $0.57 per barrel to $68.62, a month-on-month increase of 0.84%. China's INE crude oil futures contract 2510 fell by 5.3 to 481.1 yuan per barrel, while the night session rose by 5.5 to 486.6 yuan per barrel.

2 、 Calcium Carbide: Yesterday, the domestic calcium carbide market remained generally stable with minor fluctuations. The mainstream trading price in the Wuhai region stayed at 2,350 yuan/ton. Some downstream buyers had sufficient inventory from previous low-price purchases, and as prices have risen recently, trading activity has been subdued. Today, with some downstream enterprises starting planned maintenance and increasing the volume of commercial calcium carbide, regional variations have become more pronounced. The market is expected to remain steady, with a cautious and wait-and-see sentiment prevailing.

3 PVC: Yesterday, the domestic PVC spot market experienced weak fluctuations, with both negotiated pricing and fixed pricing coexisting, and transactions gradually weakening. The supply and demand fundamentals remain weak. Due to the expected end of maintenance and the impact of new production capacity, supply remains high, while domestic demand stays stable, and industry inventories continue to face pressure. As of August 28, the delivered prices of calcium carbide-based Type V PVC in East China ranged from 4,650 to 4,800 CNY/ton, while ethylene-based PVC ranged from 4,800 to 5,100 CNY/ton.

2. Price List

3. Market Outlook

The current PVC spot market fundamentals are difficult to improve, and positive factors for the PVC market are hard to find, continuing to operate weakly. As domestic PVC maintenance decreases, overall supply is expected to increase. Downstream product manufacturers in China still maintain low operating rates, with no signs of improvement in product orders, showing resistance to high prices and maintaining low-level purchasing. Raw material prices are stabilizing, and PVC cost support is acceptable.

4. Data Calendar