PVC Prices Hold in Narrow Range as Weak Demand Offsets Early-Week Gains

Key Highlights:

• PVC Price Trends: SG-5 carbide method averages 4,780 RMB/ton; market remains range-bound.
   
• Supply Stability: Producers operate normally with unchanged supply pressure.
   
• Weak Demand: Downstream buying is limited to essential spot purchases.
   
• Market Drivers: Low crude prices and muted futures curb price recovery.

PVC Prices See Mild Weekly Gain but Remain Range-Bound

The PVC spot market in China fluctuated within a narrow range last week, with prices rising early in the week before retreating to near-opening levels by Friday.

1. SG-5 PVC (Carbide Method) average price: 4,780 RMB/ton (+0.61% WoW)
2. Quotation range for SG5 electrical aggregate: 4,850–5,000 RMB/ton
3. Most producers maintained stable pricing, with adjustments limited to ±50 RMB/ton.
4. Weak crude oil and volatile futures pressured market sentiment, capping upward momentum.

Producers Maintain Stable Operations, Supply Pressure Unchanged

• Supply: Stable, with most PVC producers operating normally. Supply pressure remains largely unchanged.
• Demand: Weak downstream activity; procurement remains cautious and mostly spot-based.
• Dealers’ offers are generally soft, and inquiry volumes are low.
• The market atmosphere remains sluggish, driven primarily by basic procurement needs rather than speculative buying.

Weak Downstream Procurement Keeps Demand Under Pressure

• Upstream Calcium Carbide: Prices rebounded slightly last week (+1.4% WoW) but remain low compared to earlier months, offering limited cost support for PVC.
• Crude Oil: Declining prices and lack of supportive fundamentals weighed on overall sentiment.
• Futures Market: Range-bound and volatile, limiting the possibility of a sustained PVC price rally.

Short-Term Outlook Points to Limited Price Fluctuations

Given the current weak demand and stable supply, significant changes in the short term are unlikely. PVC prices are expected to continue moving within a range this week, with potential for mild intraday fluctuations. Upstream cost support remains limited, and downstream operating rates need to improve for a sustained price recovery.