Increased cost of polyvinyl alcohol, market price stability under pressure

May 17, 2024

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This week, the domestic price of Polyvinyl Alcohol remained stable, with consolidation and operation. As of May 17th, the price of polyvinyl alcohol was 12300.00 yuan/ton, unchanged from the beginning of this month. During the week, the polyvinyl alcohol market was mainly driven by first-time transactions, while the expectation of transactions in the polyvinyl alcohol market weakened. Dealers offered more discounts for shipments, and downstream purchasing intentions remained lackluster.
Supply side:
The market price of calcium carbide continued to decline this week. As of May 17th, the benchmark price of calcium carbide was 2833.33 yuan/ton, an increase of 0.58% compared to the beginning of this month (2816 yuan/ton). The market sentiment of calcium carbide has been significantly boosted during the week, coupled with the current decline in calcium carbide productivity, centralized equipment maintenance, and market supply shortage, which has formed a significant push on the current spot price of calcium carbide. It is expected that before the centralized maintenance of calcium carbide enterprises is completed, the demand for Pvc Resin will strongly support the price of calcium carbide.
The current price of vinyl acetate raw material Acetic Acid continues to rise. As of May 17th, the benchmark price of acetic ACID was 3400.00 yuan/ton, an increase of 4.62% compared to the beginning of this month (3250.00 yuan/ton). The expected increase in supply side is due to the scarcity of planned maintenance information and sluggish downstream domestic demand. PTA is undergoing partial maintenance, and enterprises in the northwest and east of vinyl acetate are undergoing maintenance. Acetate is operating under reduced load based on cost and export factors.
On the demand side:
From the perspective of domestic demand for polyvinyl alcohol, polymerization additives, fabric slurries, adhesives, vinylon fibers, papermaking slurries and coatings, and building coatings products have weak consumption of raw materials. Enterprises mainly purchase on a per order basis, and the accumulation of raw material inventory is limited. Production is coming to an end, and the demand for raw materials is weakening. There is currently no good news for other terminal enterprises, and there is a slight room for concessions in the price of polyvinyl alcohol in the later stage.
Overall
The supply side of PVA Resin is supported positively, but there is still a strong sentiment of price support, with a focus on price protection. The mentality of the holding merchants is still acceptable. Downstream users will continue to purchase on demand, and it is expected that the price of polyvinyl alcohol will remain stable in recent market discussions.

Author:

Ms. Yolanda

E-mail:

info@jinhetec.com

Phone/WhatsApp:

+86 13298161700