PVC: The Shorts Stampede Out

PVC2701 closed at ¥4,791/t, up ¥213 (+6%): a sealed limit-up. The East China basis widened to –¥178/t (–25) as futures outran physical, while South China flipped to a positive ¥42/t (–15). Carbide-route spot chased the move: East China at ¥4,400/t (+80) and South China at ¥4,620/t (+90); ethylene-route material held at ¥5,050/t East and ¥5,100/t South. The macro spark: the Strait of Hormuz situation escalated: reports of channel blockade layered with talk of US military action against Iran, sending crude higher. Ethylene CFR China firmed to around US$1,050/t. Carbide told a choppier story: Wuhai mainstream trade prices rose to ¥2,550/t, then some majors quickly cut ¥50 back to ¥2,500/t.