Last week, the domestic market for pvc showed more wait-and-see mood. On june 1, the mainstream in the east china region, which is the fifth type of electroplasm, was $7300 to $7350 (ton, same price) and in the south china region, it was $7350 to $7380. Ethylene-based pvc fluctuations were low overall and high price resistance remained widespread. The current domestic market for pvcs will continue to be narrowly adjusted, with insufficient upward momentum, and pvc producers will have no intention of reducing prices, and up- and down-stream confrontations will re-emerge。
The first is driven by higher prices of raw materials for electricity, and the high cost of domestic pvc production, i. E., water. Since 1 june, with the elimination of preferential electricity prices by the state and the gradual implementation of the policy of increasing electricity prices in the sub-sectors to local governments, production costs in the electricity and stone industries will increase significantly, while the increased cost of purchasing the electricity and stones will increase the firmness of the pvc enterprises to sell the quotations out of the plant floor level。
Secondly, the price differentials between the domestic ethylene and electroplasm laws will likely be reduced this week. In june, china's offer to import vcm fell to $850, a downward adjustment of $30 from the previous month, while the offer to open domestic ethylene law pvc in june was somewhat lower, while the high price of electricity stones made the pvc more stable or elevated. As a result, pvc prices for the two processes are increasing。
Thirdly, the volatility of futures markets has always held back spot markets. On 1 june, the main pvc contract received a low of $7275, a decrease of $205, which had a greater impact on the spot market。
The fourth is that downstream demand from the pvc is generally satisfactory. At present, the pvc hardware industry in the country is not full, and soft products such as film in the east china area are in large stock and poorly sold. For lack of demand rigidity, the pvc market could be quite difficult to reverse。
