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Boosted by interest rate cuts, PVC repairs low valuation rebound !

The PVC rebounded higher on Monday, and the central bank’s reduction of LPR interest rates is conducive to reducing the interest rate of residents’ home purchase loans and the medium and long-term financing costs of enterprises, boosting confidence in the real estate market. Recently, due to the intensive maintenance and the continuous large-scale high temperature weather across the country, many provinces and cities have introduced power curtailment policies for high-energy-consuming enterprises, resulting in a phased contraction of the PVC supply margin, but the demand side is also weak. From the perspective of downstream performance, the current situation The improvement is not great. Although it is about to enter the peak demand season, the domestic demand is rising slowly, and some areas are temporarily stopped due to the high temperature. The short-term improvement is not enough to bring about sufficient inventory optimization. At present, the supply and demand margin of PVC itself is still loose. At the same time, the prices of crude oil and calcium carbide are weakened due to the loosening of the supply and demand margin. The weak demand superimposes the weak cost, which makes the price under pressure in stages. In view of the fact that the comprehensive profit of external PVC mining enterprises maintains a superposition of losses The peak consumption season is approaching, the support for the disk is still there, and the price may continue to fluctuate in the low range, but it does not change the expectation of the medium-term pressure trend. Changes in demand in the short term will be the focus of the near-term price turnaround, with continued focus on improving demand.


Post time: Aug-26-2022