PVC Price to Dip in H2, 2021 After Great Rises in H1
China’s PVC market prices remained on an upswing in the first half of 2021, reaching a ten-year new high, impacted by supply-demand fundamentals, sudden factors and funds. In the second half of the year, the bullish effects brought by the monetary policy, sudden factors and export market will weaken, and then PVC prices will return to a rational level. The downward range of prices will not be obvious because the fundamentals will foster the prices a lot.
Multiple bullish factors promoting PVC mainstream prices to soar
In H1, 2021, PVC prices were notably higher than those in the same period of last year. Taking SG-5 in East China as an example, its prices from early January to June 22 averaged RMB 8,530/mt, up RMB 2,472/mt Y-O-Y and up RMB 1,889/mt from the average price of 2020. The highest price was RMB 9,473/mt on May 10, while the lowest one was RMB 7,100/mt on January 14.
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