November 2017 cable raw materials (PVC) monthly report

(1) International crude oil dynamics

In November, international oil prices stopped falling and rebounded, and the overall upward trend
.
On the bearish side, the dollar index rose sharply at the beginning of the week, weighing on oil prices while the market waited for the OPEC meeting; On the positive side, the market is optimistic about the OPEC meeting to extend the production cut agreement, while leaks in some pipelines in the United States and Canada and falling crude oil inventories in the United States have pushed oil prices to a new two-year high
.
As of Nov.
22, WTI January crude futures closed at $58.
02/b and Brent January crude futures closed at $63.
32/b
.

(2) Calcium carbide market dynamics

This month, the supply and demand game in the calcium carbide market is still continuing, the increase in terminal arrivals is limited, and there is no inventory pressure
on enterprises for the time being.
It is expected that the supply and demand game will continue in December, and the oversupply of calcium carbide will be difficult to change, and the price will continue to fall
.
However, PVC demand for calcium carbide is high, plus calcium carbide companies have cost expenditures, and there is resistance to the sharp downward price decline, so the price is expected to be supported
slightly above the cost line.

(3) Ethylene market dynamics

This month, ethylene has fluctuated in a narrow range
.
According to the test of business agencies, the average price of ethylene fell from 1072.
8 US dollars / ton to 1072 US dollars / ton, down 0.
8 US dollars / ton, or 0.
07%.

CFR Southeast Asia rose $20/mt, CFR Northeast Asia rose $60/mt, FD US Gulf rose $44/mt, CIF Northwest Europe fell $38/mt, FD Northwest Europe fell $66/mt
.
The future market can pay attention to the impact of
downstream styrene and polyethylene demand on ethylene.