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The PVC prices in China have been experiencing a slight uptrend recently after the declines experienced in December and Early January. This change is driven by the combination of rising crude oil prices and renewed activity in the PVC futures market, which improved sentiment and created a positive linkage between futures and the spot market. Increased export orders and a temporary boost in enterprise shipments also contributed to the improved market atmosphere.

Production levels remained stable despite temporary inspections and reduced output at some facilities. However, these disruptions had minimal impact on the overall supply, as production rates stayed high, maintaining pressure on inventory levels. Enterprises implemented strategies to reduce inventories, particularly as the pre-holiday period approached, but overall social inventories continued to face upward pressure.

The major decline in the PVC prices were attributed to the stable prices for upstream calcium carbide, which provided limited support. The market benefited temporarily from downstream procurement activity before the holiday, but as the peak of purchasing concluded, resistance to elevated prices began to suppress additional gains.

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The sustained rise in prices earlier in the month was largely speculative, driven by policy influences and trader activities. However, mid-January brought fluctuations as crude oil prices softened, weakening the futures market and leading to a slight pullback. As the holiday season approaches, the trading atmosphere has slowed, with demand declining as downstream companies gradually suspend operations. The spot market continues to face challenges from high supply levels, subdued inquiry procurement, and restrained downstream activity, which together limit the potential for significant price increases.