Recently, PVA trading volume has been very low, coupled with increased inventory pressure. The market is gradually showing a state of price with no market, and the significance of price changes is not significant. Most of them are fluctuating and consolidating. As of April 8th, the benchmark PVA price of Shengyishe is 12200.00 yuan/ton, a decrease of 1.21% compared to last week’s (13500.00 yuan/ton).
Supply side:
The market price of vinyl acetate fluctuated and fell. The current price of acetic acid, the raw material for vinyl acetate, has slightly increased. As of April 8th, the benchmark price for acetic acid in Shengyishe was 3150.00 yuan/ton, an increase of 1.61% compared to the beginning of this month (3100.00 yuan/ton). The price of calcium carbide in the market has partially declined, and the cost side support is insufficient; Mainstream manufacturers in East China have parked their equipment, and the market’s spot resources have decreased compared to before. However, downstream demand continues to decline, and downstream purchasing enthusiasm is poor, resulting in limited actual market transactions; Under the constraint of weak demand, market prices are unsupported; The mainstream negotiations for the vinyl acetate market in South China range from 6100 to 6400 yuan/ton, while the mainstream negotiations for the high and low end of the vinyl acetate market in East China range from 6100 to 6200 yuan/ton.
Demand side:
The downstream market is showing a weak situation, and the market is gradually starting to operate, but the overall situation is not as good as in previous years. The usage has not improved, and the purchasing willingness is not good, making it difficult to increase the volume. Enterprises are offering discounts to sell. Overall, the demand side still slows down, and the negative impact on the PVA market. Polymer additives, fabric slurries, and adhesives are expected to increase in demand due to weather changes and the expected increase in terminal construction. The market negotiation atmosphere will warm up, and demand may improve. Downstream demand is expected to rebound, which will have a certain stimulating effect on the PVA market and provide support and increase.
Although the current PVA price has been repeatedly lowered, there is still profit margin. Some manufacturers sell at low prices, but the overall trading volume in the PVA market has been affected by light trading. Traders and downstream traders are cautious in their operations. After the price reduction, the market’s bottom buying sentiment is highlighted, and it is expected that the purchasing power of domestic and foreign spot goods will strengthen, boosting market confidence.
In summary, PVA supply is relatively sufficient; In terms of demand, downstream factories purchase according to demand and still maintain a cautious attitude towards procurement. Currently, the main downstream factories are producing normally, and the operating rate of terminal factories is low. Procurement still lacks enthusiasm, and operators are more cautious in procurement; At present, although supply side factories have accumulated inventory, raw material prices are slightly supported, and it is expected that PVA prices may consolidate next week or there is a possibility of an upward trend in the short term. The expected transaction center is between 5900-6600 yuan/ton.
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