PVC Market Price Trends in May
This month, the price trend of the PVC spot market rose first and then fell. The high price did not last. In the second half of the month, the prices of the two markets fell significantly.
The main contract price hit a new annual low point within the month, with the lowest point of 4743. The spot price also fell back to the trough range, and the weakness of the two markets within the month was prominent.
The factors affecting the two markets in May can be summarized as follows:
1. The operation of the futures market tested the low range twice within the month. The first low end was 4755 on the 12th, and the second low point was 4743 on the 28th. After the first low point, the price rose within the month.
The change in Sino-US tariffs was also the main guide for this rise. However, after the futures price rose above 5000, it faced pressure and turned to fall. It returned to the trough again at the end of the month.
2. In terms of PVC supply, after entering May, PVC units began to be overhauled one after another. The overall overhaul loss in May was still high. The reduction in supply alleviated the pressure of social inventory to a certain extent, but the impact of changes in the supply level on prices became smaller.
3. On the demand side, it is difficult to achieve a better transformation of production capacity in the sluggish market, and the enthusiasm of middlemen to purchase goods is also suppressed. Although the market has risen during the month, it is difficult to boost the volume of transactions.
4. The high-level economic and trade talks between China and the United States were held in Geneva, and a joint statement reached at the talks was issued on May 12.
The two sides promised to adopt a new tariff policy before May 14, 2025. The United States will retain the remaining 10% tariff and cancel or suspend other additional tariffs. Changes in tariffs are also a factor supporting the upward trend of the market during the month.
5. After entering the second half of the month, the overall commodity situation weakened, and most commodities began to decline.
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