On July 21, the domestic PVC paste resin market maintained its upward momentum, demonstrating a strong performance overall. Driven by upcoming centralized plant maintenance and a reduction in low-priced supplies, market offers strengthened, leading to higher transaction prices.

I. Market Overview: Price Increases with High-Level Transactions

According to the latest market monitoring data:

• Leather-Grade: The average spot market price for PVC paste resin (leather-grade) reached 6,885 RMB/ton, up by 69 RMB/ton compared to the previous trading day, representing a 1.01% increase.

• Glove-Grade: The average spot market price for PVC paste resin (glove-grade) reached 6,903 RMB/ton, up by 82 RMB/ton from the previous trading day, marking a 1.20% increase.

Manufacturers have shown a clear inclination to raise prices, with overall quotes increasing by 100–200 RMB/ton. As low-priced spot offers dwindle, traders are largely following the market trend. Downstream product manufacturers are procuring strictly on a need-to-buy basis, resulting in limited new contract volumes.

Regional Price Breakdown (Including Tax & Freight):

• Glove-Grade: Averaged around 7,000 RMB/ton in East China, 7,050 RMB/ton in South China, and 6,950 RMB/ton in North China.

• Leather-Grade: Averaged around 7,000 RMB/ton in East China, 7,250 RMB/ton in South China, and 6,900 RMB/ton in North China.

II. Supply, Demand, and Cost Analysis

• Raw Materials: Calcium carbide spot prices remained stable today, while VCM prices stayed at elevated levels. Overall production costs and capital requirements for paste resin manufacturers remained steady, providing a solid floor of cost support while maintaining workable profit margins for producers.

• Supply Side: Operating capacity for PVC paste resin stood at approximately 1.283 million tons today, with the industry's average operating rate holding at around 72.28%. Overall production and market supply remain relatively stable for now.

III. Market Outlook: Steady Gains Expected

Considering both cost dynamics and supply-demand fundamentals:

1. Firm Cost Support: Upstream raw material prices remain steady, providing stable baseline support for PVC paste resin prices.

2. Anticipated Supply Reduction: As several PVC paste resin producers plan to undergo centralized maintenance toward the end of the month, market supply is expected to tighten. Combined with relatively low inventory levels at manufacturing sites, this anticipated tightening continues to boost market sentiment.

Forecast: In the short term, PVC paste resin market prices are expected to remain steady with an upward bias, with anticipated price adjustments ranging from 50 to 100 RMB/ton. Market participants should closely monitor the progress of scheduled plant turnarounds and downstream demand fulfillment.