[PC Weekly Review] Market Continues to Explore the Bottom

1. Review of the Domestic PC Market: Market Focus Shifts Downward

This week, the domestic PC market showed a weak downward trend. As of August 14th, the closing price of Covestro 2805 in the East China market, sourced from foreign capital, was 14,600-14,600 yuan/ton, with the weekly average price at 14,600 yuan/ton, a decrease of 0.48% compared to the previous week. For domestic sources, such as Luxi 1609 in the East China market, the closing price was 11,150-11,200 yuan/ton, with the weekly average price at 11,185 yuan/ton, a decrease of 0.22% compared to the previous week.

2. Driving Factors Analysis: Insufficient Support from Downstream Rigid Demand

This week, the domestic PC market continued to decline, mainly due to poor transfer of supply in the earlier stage. Industry operating rates are slowly increasing, but the circulation efficiency of market supplies remains low. Some factories further lowered their prices this week, hitting new lows for the year. Quoted prices from traders also edged down accordingly. Downstream buyers showed slightly improved enthusiasm for low-priced purchases compared to earlier, and the atmosphere for new orders has warmed up compared to before. However, the overall increase in new orders remains sluggish.

3. Market Outlook: The market may operate at a low level.

The domestic PC market is expected to fluctuate at a low level next week. From the supply side, industry operations are close to 80%, and the overall market supply of goods is ample; from the downstream demand side, with some rigid purchases made this week, it is expected that downstream will mostly digest inventory next week. As the PC market falls to the lowest point of the year, sellers’ willingness to ship at too low prices is cautious in the short term. It is expected that the price of domestic goods in East China will range between 10,800 and 11,400 yuan per ton in the short term.