NAV

On August 4, the domestic PVC paste resin market demonstrated a stable, range-bound operational trend. Opening quotes from production enterprises remained predominantly firm, with minor localized adjustments, while actual spot deals were largely negotiated on an individual basis. With the gradual restart of previously offline production facilities, market supply increased moderately. However, downstream purchasing momentum remained sluggish, resulting in modest overall trading activity.

I. Market Overview: Mainstream Quotes Hold Firm with Moderate Regional Trading

According to the latest market monitoring data:

• Leather-Grade: The average spot market price for PVC paste resin (leather-grade) reported at 6,914 RMB/ton, flat compared to the previous trading day.

• Glove-Grade: The average spot market price for PVC paste resin (glove-grade) reported at 6,916 RMB/ton, holding steady compared to the previous trading day.

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 7,025 RMB/ton in East China, 7,050 RMB/ton in South China, and 6,925 RMB/ton in North China.

II. Supply, Demand, and Cost Fundamentals

• Cost Side: Upstream calcium carbide spot prices continued to trend upward today, providing cost support for paste resin while simultaneously increasing production pressure on manufacturers and squeezing industry profit margins slightly.

• Supply Side: Following the restart of previously maintenance-bound facilities, operating capacity for PVC paste resin rose to 1.283 million tons today, pushing the industry operating rate to approximately 72.28%. Output increased moderately, maintaining ample spot availability across distribution channels.

• Demand Side: Buying enthusiasm among end-users remained subdued, with downstream manufacturers procuring strictly on a hand-to-mouth basis, preventing any significant increase in transaction volume.

III. Market Outlook: Operating Rates May Ease; Market to Maintain Standoff

Considering supply dynamics and demand conditions:

1. Supply Expectations: Planned plant maintenance at select production facilities in Inner Mongolia tomorrow is expected to lower overall industry operating loads, which may help ease supply-side pressure.

2. Demand & Market Sentiment: Downstream procurement appetite remains weak, resulting in lower-than-expected transaction performance. Coupled with diverging trends in raw material costs, mixed sentiment persists, keeping market participants in a cautious, wait-and-see stance.

Summary: In the short term, the PVC paste resin market is expected to continue moving in a prolonged standoff, with actual transaction prices relying primarily on bilateral negotiations. Market participants should closely monitor the execution of plant turnarounds in Inner Mongolia and raw material price movements.