- Slow demand and competitive localized cargoes threatened PVC prices in China during April
- Decrement showed on inventory level, owing to maintenance shutdown at producers’ plant
- Local PVC price trend in April are expected to prolong
PVC prices in China’s local market were on the red note at the beginning of April. An acetylene-based PVC producer in the country reported a downward price adjustment on April 1, by CNY200/ton ($28/ton) as compared to March 30. The plunge on export and domestic demand, as well as the high inventory level, was the major ground of the downward price correction, SSESSMENTS.COM was told. Moving towards the next week, offers for acetylene-based PVC was successfully increased between CNY50-200/ton ($7-28/ton) as supported by the firmer futures market. The uptrend on PVC prices lasted until the week commencing April 13. Offers for local acetylene-based PVC increased between CNY30-100/ton ($4-14/ton) and ethylene-based PVC between CNY30-200/ton ($4-14/ton). However, the uptrend on PVC prices did not last for a long time as localized cargoes were being offered at attractive levels. In the last week of the month, acetylene-based PVC decreased between CNY50-100/ton ($7-14/ton), while for ethylene-based PVC, the offers were stable to decrease between the same amount as acetylene-based PVC. Price comparison is on a weekly interval.
In the import market, May shipment offers from the leading Taiwanese PVC producer surfaced with a notable downward price adjustment of $160/ton as compared to April’s level. Despite the significant changes, Chinese market players opined to SSESSMENTS.COM that the offers were still too high and did not meet buyers’ expectations. Sources said the prices should be lower by at least $200/ton to make it workable. Likewise, Japanese PVC cargoes were also down by $160/ton from April’s level. On the week commencing 27, deals for South Korean ethylene-based cargoes captured $20/ton lower than the initial offers available a fortnight ago. In the export market, at the beginning of the month, an acetylene-based PVC producer was offering based on buyers’ inquiries. While an ethylene-based PVC producer adjusted down the export offers by $20/ton as compared to a week earlier.
In general, demand for PVC resins in April was sluggish. Most converters reported only running the production between 50-60% from the normal rate as demand for the end products especially from the export market are limited due to the Coronavirus outbreak. A slight improvement captured on the week commencing April 6 and April 13 as PVC prices in the futures market showed an increment. However, the volume of purchases was small. On the supply front, SSESSMENTS.COM noted that inventory of acetylene-based PVC in coastal China at the beginning of the month stood at 483,600 tons. The level of inventory went up by 1,100 tons on the week commencing April 13. In the last two weeks of April, the inventory decreased by 33,200 tons in total on the back of maintenance shutdown at producers’ plant. On the week commencing April 20, inventory level of acetylene-based PVC in East China even recorded 20-40% lesser than a week earlier. Though the inventory slacked down, the amount is still considered as huge.
Entering into May, most Chinese PVC market participants believe that local PVC prices will move down further considering the pressure from the imported cargoes as well as inventory in the local market. Demand-wise, the Labour Day holiday at the beginning of May expected to affect the demand for PVC, as stated to SSESSMENTS.COM.
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Transaction for local acetylene-based PVC between April 1 to April 3 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | Offer Given | 4,900-5,250 | 611-655 |
| China | Offer Received | 5,300 | 661 |
Transaction for import ethylene-based PVC between April 1 to April 3 on LC 90 Days, CFR China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| USA | Offer Received | 720 |
Transaction for local PVC between April 6 to April 10 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | Acetylene-based | Offer Given | 5,100-5,450 | 636-680 |
| China | Acetylene-based | Sold | 5,250-5,300 | 655-661 |
| China | Ethylene-based | Offer Given | 5,400-5,700 | 673-711 |
| China | Ethylene-based | Offer Given | 5,600* | 698 |
Description: *Offers on FD basis
Transaction for import ethylene-based PVC between April 6 to April 10 on LC at sight, CIF China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| South Korea | Offer Given | 630 |
| South Korea | Buy Idea | 600 |
| South Korea | Offer Received | 650 |
| Taiwan | Offer Given | 750-760 |
Transaction for export acetylene-based PVC between April 6 to April 10 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 730 |
| China | Buy Idea | 620 |
Transaction for local/localized PVC between April 13 to April 17 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| China | Acetylene-based | Offer Given | 5,300-5,550 | 661-692 | EXW | China |
| China | Acetylene-based | Offer Given | 5,400-5,800 | 673-723 | EXW | South China |
| China | Acetylene-based | Offer Given | 5,400-5,550 | 673-692 | EXW | East China |
| China | Ethylene-based | Offer Given | 5,700-5,800 | 711-723 | EXW | China |
| China | Ethylene-based | Offer Given | 5,400-5,450 | 673-680 | EXW | East China |
| China | Ethylene-based | Offer Given | 5,900 | 736 | FD | East China |
| China | Ethylene-based | Sold | 5,800-5,900 | 723-736 | FD | East China |
| India | Ethylene-based | Offer Received | 5,300 | 661 | EXW | China |
| Thailand | Ethylene-based | Offer Received | 5,500 | 686 | EXW | China |
| USA | Ethylene-based | Offer Received | 5,400-5,450 | 673-680 | EXW | China |
Transaction for import ethylene-based PVC between April 13 to April 17 China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term | Shipment Term |
|---|
| Taiwan | Sell Idea | 610-620 | LC at sight | CFR |
| Taiwan | Offer Received | 680 | LC at sight | CFR |
| Indonesia | Bid Received | 600-620 | LC at sight | CIF |
| Indonesia | Sell Idea | 600-620 | LC at sight | CIF |
| South Korea | Bid Given | 600-620 | LC 90 Days | CIF |
| South Korea | Sell Idea | 640 | LC 90 Days | CIF |
| Southeast Asia | Offer Received | 600-620 | LC at sight | CIF |
| Thailand | Offer Received | 665 | LC at sight | CIF |
| Thailand | Buy Idea | 630-635 | LC at sight | CIF |
| Thailand | Bid Given | 625 | LC at sight | CIF |
Transaction for export acetylene-based PVC between April 13 to April 17 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Sold | 720 |
Transaction for local/localized PVC between April 20 to April 24 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton | Delivery Term |
|---|
| China | Acetylene-based | Offer Given | 5,400-5,800 | 673-723 | EXW |
| China | Acetylene-based | Sold | 5,300-5,800 | 661-723 | EXW |
| China | Ethylene-based | Offer Given | 5,700-5,900 | 711-736 | EXW |
| China | Ethylene-based | Offer Given | 5,700-5,900 | 711-736 | FD |
| China | Ethylene-based | Sold | 5,800-5,900 | 723-736 | FD |
| Belgium | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| India | Ethylene-based | Offer Given | 5,200-5,300 | 648-661 | EXW |
| Indonesia | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| South Korea | Ethylene-based | Offer Given | 5,250-5,380 | 655-671 | EXW |
| Thailand | Ethylene-based | Offer Given | 5,300-5,330 | 661-665 | EXW |
| Ukraine | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| USA | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
Transaction for import ethylene-based PVC between April 20 to April 24 China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term |
|---|
| Japan | Offer Given | 650 | LC at sight | CIF |
| Japan | Offer Given | 630 | LC at sight | CFR |
| Japan | Offer Received | 670 | LC at sight | CIF |
| Taiwan | Offer Received | 650-660 | LC at sight | CIF |
| Taiwan | Offer Given | 660 | LC at sight | CFR |
| Taiwan | Offer Received | 610-620 | LC at sight | CFR |
| Thailand | Offer Received | 650 | LC at sight | CIF |
| Thailand | Buy Idea | 630 | LC at sight | CIF |
| USA | Offer Received | 610 | LC at sight | CIF |
| USA | Sold | 590 | LC at sight | CIF |
| USA | Offer Received | 590 | LC 90 Days | CIF |
| USA | Bid Given | 570-575 | LC 90 Days | CIF |
Transaction for export acetylene-based PVC between April 20 to April 24 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 680 |
Transaction for local/localized PVC between April 27 to April 30 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton) | Delivery Term |
|---|
| China | Acetylene-based | Offer Given | 5,300-5,650 | 661-705 | EXW |
| Belgium | Ethylene-based | Offer Given | 5,270-5,280 | 657-658 | EXW |
| Brazil | Ethylene-based | Offer Given | 5,300-5,310 | 661-662 | EXW |
| China | Ethylene-based | Offer Given | 5,700-5,900 | 711-736 | EXW |
| China | Ethylene-based | Offer Received | 5,800 | 723 | FD |
| China | Ethylene-based | Offer Given | 5,600-5,650 | 698-705 | FD |
| India | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| Indonesia | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| Japan | Ethylene-based | Offer Given | 5,400 | 673 | EXW |
| Mexico | Ethylene-based | Offer Given | 5,300-5,310 | 661-662 | EXW |
| South Korea | Ethylene-based | Offer Given | 5,300 | 661 | EXW |
| Taiwan | Ethylene-based | Offer Given | 5,390-5,400 | 672-673 | EXW |
| Thailand | Ethylene-based | Offer Given | 5,400 | 673 | EXW |
| Ukraine | Ethylene-based | Offer Given | 5,270-5,280 | 657-658 | EXW |
| USA | Ethylene-based | Offer Given | 5,270-5,350 | 657-667 | EXW |
Transaction for import ethylene-based PVC between April 27 to April 30 China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Japan | Sold | 630 |
| South Korea | Sold | 630 |
Transaction for export acetylene-based PVC between April 27 to April 30 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 680-710 |
Tags: Asia Pacific,China,English,Monthly,NEA,PVC
Published on May 7, 2020 5:06 PM (GMT+8)
Last Updated on June 10, 2020 11:59 AM (GMT+8)
