The winter of 2020 has come, but the fire of PVC market is like a hot summer.

The periodicity of PVC resin is very obvious. The price of this product continued to decline from 2008 to the first half of 2016. In May 2016, special PVC began to rise ahead of ordinary PVC, from around 7,000 yuan/ton at the beginning of the year to 9,600 yuan/ton to 10,000 yuan/ton. The ordinary PVC market is also going up. In the following three years, the price of PVC resin has undergone shock adjustments, and has experienced the epidemic. In April this year, it fell to a low of 5,000 yuan/ton. Then with the recovery of production, domestic PVC resin prices have been rising all the way, and have now exceeded the 8,000 yuan/ton mark.

After analysis by industry insiders, the reasons are different from that of the round of PVC price increases in 2016. The main reasons are summarized as follows:

1. Low social inventory
2. A joint meeting is held
3. Futures rose sharply
4. Efforts in environmental protection supervision
5. Logistics limit policy
6. Depreciation is good for exports
7. Lower temperatures in the northwest have caused repeated epidemics, and production efficiency of production enterprises in Inner Mongolia, Xinjiang and Shandong may decrease.

Due to the above reasons, it is expected that the PVC raw material market will remain high in the remaining months of 2020.

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