Local PVC continues to see slight drops in China
Nov. 02, 2018
In China, the local PVC market continued to track a stable to slightly softer trend for the second consecutive week as demand remained limited to buyers’ needs.
Local prices for ethylene-based PVC prices were stable to CNY150/ton ($22/ton) lower from last week while acetylene-based PVC prices retreated further by CNY80-100/ton ($11-14/ton). PVC futures on the Dalian Commodity Exchange also witnessed a slight weekly decrease of CNY30/ton ($4/ton) as of October 31. A few traders commented, “Although supplies remain limited amid ongoing maintenance shutdowns and sellers’ remaining backlog orders, local PVC prices remained on downtrend given weak demand. We think the local PVC market will continue to retreat in the days ahead as winter season will hinder PVC consumption.”
Overall import PVC k67 prices were unchanged from last week to be quoted at $830-860/ton CIF, cash. Offering on this week’s low end, a trader reported that their offers for US PVC remained stable on a weekly basis. “Our supplier is standing firm on its offers given its limited export allocation amid an ongoing shutdown. However, buyers are asking for lower offers,” he noted.
Local PVC prices are believed to have room for further decreases in the days ahead as demand is expected to weaken further in the winter season. As for imports, the sentiment in the Indian PVC market cautiously improved as major Far East Asian suppliers managed to sell out their November allocations to the country. However, some players argue that this factor will be restrained by falling spot ethylene prices in Asia and the softening in China’s local PVC market.