News summary

Calcium carbide prices rebounded slightly200freespins, PVC operating rates decreased month-on-month, but inventory pressure is still high. Real estate policies stimulate PVC futures prices to rise, but attention should be paid to the conflict between high inventories and downstream high-priced raw materials.

Newsletter text

[Calcium carbide prices rebounded after hitting bottom, and the PVC market situation remains to be observed] Entering mid-May, calcium carbide prices rebounded slightly after a period of downward trend.

[PVC operating rate declines, supply chain shows adjustment] The operating rate of the PVC industry fell after continuous growth, with a month-on-month decrease of 3.3%.200freespins.95%, to 78.55%, but still at a high level compared with the same period last year.

[Formosa Plastics price adjustment may affect the market] Taiwan Formosa Plastics raised its PVC price to mainland China by US$20/ton in June. This wave of operation may drive inquiry activities in the external market.

[The growth rate of downstream demand is limited, and the impact of real estate policies is doubtful] Despite the continuous favorable policies, downstream demand growth is still limited. The digestion of social inventories has been slow since the beginning of the year, and inventory levels have remained high.

[Real estate data is weak, the market expects policy effects] Real estate market data shows that the transaction area of commercial housing in 30 large and medium-sized cities is at the lowest level in the same period of the previous year, and the market is expecting the policy stimulus effect.

[PVC futures prices rise, the spot market is under pressure] The price of the PVC2409 contract rose after experiencing increased positions, closing up with a gain of 3.74%.

[The basis weakened, and the spot market transactions were poor] On May 17, the price of calcium carbide PVC in East China was reported at 5935 yuan/ton, while the closing price of V2409 futures was 6296 yuan/ton. The basis was-361 yuan/ton, showing that the spot market is resistant to high-priced raw materials.

[Professionals advise cautious pursuit of gains and pay attention to market correction] Market analysts have warned that although PVC futures prices show an upward trend, chasing behavior should be treated with caution and investors are advised to pay attention to the timing of market correction.