On June 28, the epidemic prevention and control policy slowed down, the pessimism about the market last week significantly improved, the commodity market generally rebounded, and the spot prices in all parts of the country improved. With the price rebound, the basis price advantage gradually decreased, and most of the transactions are immediate deals. Some transactions environment were better than yesterday, but it was difficult to sell cargoes at high prices, and the overall transaction performance was flat.
In terms of fundamentals, the improvement on the demand side is weak. At present, the peak season has passed and there is a large area of rainfall, and the demand fulfillment is less than expected. Especially under the understanding of the supply side, the inventory is still frequently accumulated against the season, which continues to put pressure on prices. The situation with strong expectations and weak reality still needs time to repair.
At the same time, the price of crude oil fell sharply, and the price of calcium carbide continued to fall, and the margin of PVC cost side support weakened. However, at present, enterprises using external mining method for calcium carbide suffer losses. Under the background of PVC undervaluation and profit, if the industry continues to suffer losses, the start-up load may be restrained, and the start-up of PVC itself is also falling at a high level driven by maintenance, and the market will still receive support from the supply side in the short term. In addition, the overseas energy crisis is still continuing. Currently, China is entering the summer. With the arrival of the power consumption peak, there are rumors of power rationing at the late peak in Ulanqab. In the case of loss of calcium carbide enterprises, the fundamentals of raw calcium carbide may improve.
Post time: Jun-29-2022