- Local acetylene and ethylene-based PVC prices captured on a downtrend
- PVC demand in China was slow during March
- Local and export PVC offers predicted to decrease further, some producers suspend offers
According to the data collected by SSESSMENTS.COM’s team, acetylene and ethylene-based PVC offers were stable to soft in the first week of the month. A local acetylene-based PVC producer decided to reduce the offers by CNY50/ton ($7/ton) on the high-end of the price range owing to slow sales from the company’s end. Likewise, a local producer also reduced ethylene-based PVC offers by CNY200/ton ($28/ton) due to inventory pressure. Moving to the second week of the month, local offers for acetylene and ethylene-based PVC decreased between CNY50-150/ton ($7-21/ton) and CNY50/ton ($7/ton) respectively. By the third week, local offers for ethylene-based PVC dropped between CNY50-100/ton ($7-14/ton) while the offers for acetylene-based PVC were kept stable. Moving to the final week of March, most local producers and traders reduced acetylene-based PVC offers between CNY50-300/ton ($7-42/ton), while some adjusted down ethylene-based PVC offers by CNY100/ton ($14/ton) following the downward movement in the futures prices. All changes on a weekly comparison.
In the export market, downward movement was captured in the first week of the month as several Chinese producers trimmed acetylene-based PVC offers between $5-15/ton. On the week commencing March 9, a local producer decided to keep the export offers for acetylene-based PVC stable while other producers reduced the offers between $10-20/ton. All compared to a week earlier. Sources added to SSESSMENTS.COM that the number of transactions in the export market has been decreasing significantly since the third week of March due to the growing concern over intensified Coronavirus outbreak globally.
As reported to SSESSMENTS.COM on March 30, one of the largest acetylene-based in China decided to halt the offers to the export market due to a spike in Coronavirus cases worldwide that have led to significant decreases in demand. While on March 31, a Chinese PVC producer lowered export offers for ethylene-based PVC between $20-30/ton on a weekly comparison. The producer stated that the company considered to stop offering to the export market due to sluggish demand as several countries implemented lockdown.
Market sources reported to SSESSMENTS.COM that PVC demand in China was sluggish in March as most buyers already have sufficient inventory on hand while the demand for finished products remained slow. As PVC futures prices for May 2020 settlement in the Dalian Commodity Exchange have fallen as much as CNY1,125 ($159/ton) in March, buyers had no confidence in making purchases. Moreover, the Coronavirus outbreak continues to spread globally hence players opted a wait-and-see stance due to the market uncertainties. On the supply side, the inventory level of acetylene-based PVC in coastal China recorded at 484,400 tons as of Monday, March 23. Compared to the level on March 2, the inventory increased by 56,900 tons.
Looking ahead, the majority of Chinese market players expect that local and export PVC offers will move lower in the near term considering the current market situation. Similarly, the demand is predicted to remain soft in the days to come as most buyers prefer the wait-and-see stance amid the market volatility, SSESSMENTS.COM was told.
Transaction for local PVC between March 2 to March 6 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 | 6,150-6,400 | 767-798 |
| China | Ethylene-based | Offer Given | 6,900-7,100 | 860-885 |
| China | Ethylene-based | Sold | 6,850-7,100 | 854-885 |
Transaction for export acetylene-based PVC between March 2 to March 6 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 795-825 |
Transaction for local PVC between March 9 to March 13 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 | Delivery Term |
|---|
| China | Acetylene-based | Offer Given | 5,900-6,200 | 736-773 | EXW |
| China | Acetylene-based | Sold | 6,000 | 748 | EXW |
| China | Ethylene-based | Offer Given | 6,600-6,800 | 823-848 | EXW |
| China | Ethylene-based | Offer Given | 6,650-6,800 | 829-848 | EXW |
| China | Ethylene-based | Offer Given | 6,600 | 823 | FD |
| China | Ethylene-based | Sold | 6,750 | 841 | EXW |
Transaction for export PVC between March 9 to March 13 on LC at sight, FOB China basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Offer Given | 785-800 |
| China | Acetylene-based | Bid Received | 740-750 |
| China | Acetylene-based | Sold | 790 |
| China | Ethylene-based | Offer Given | 820 |
Transaction for local PVC between March 16 to March 20 on cash, EXW/FD 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 | 5,750-6,200 | 717-773 | EXW |
| China | Ethylene-based | Offer Given | 6,550-6,900 | 817-860 | EXW |
| China | Ethylene-based | Offer Given | 6,700-6,800 | 835-848 | FD |
Transaction for import ethylene-based PVC between March 16 to March 20 on LC at sight, CIF/CFR China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Japan | Offer Given | 810 |
| Japan | Offer Received | 860 |
| Taiwan | Offer Given | 810-820 |
Transaction for export PVC between March 16 to March 20 on LC at sight, FOB China basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Offer Given | 775-790 |
| China | Acetylene-based | Sell Idea | 770 |
| China | Ethylene-based | Offer Given | 820 |
Transaction for local PVC between March 23 to March 27 on cash, EXW/FD 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 | 5,520-5,950 | 655-742 | EXW |
| China | Ethylene-based | Offer Given | 6,300-6,400 | 785-798 | EXW |
| China | Ethylene-based | Offer Given | 5,900-6,300 | 736-785 | FD |
Transaction for import ethylene-based PVC between March 23 to March 27 on LC at sight, CFR China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Japan | Sold | 810 |
| Taiwan | Offer Given | 820 |
Transaction for export PVC between March 23 to March 27 on LC at sight, FOB China basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Offer Given | 720 |
| China | Ethylene-based | Offer Given | 770-780 |
Transaction for local PVC between March 30 to March 31 on cash, EXW/FD 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 | 5,100-5,500 | 636-686 | EXW |
| China | Acetylene-based | Offer Received | 5,200-5,300 | 648-661 | EXW |
| China | Acetylene-based | Sold | 5,200 | 648 | EXW |
| China | Ethylene-based | Offer Received | 5,600 | 698 | EXW |
| China | Ethylene-based | Offer Received | 5,900 | 736 | FD |
| China | Ethylene-based | Offer Given | 5,550-5,600 | 692-698 | FD |
| China | Ethylene-based | Bid Received | 5,100-5,200 | 636-648 | FD |
| China | Ethylene-based | Sold | 5,500-5,550 | 686-692 | FD |
Transaction for export ethylene-based PVC between March 30 to March 31 on LC at sight, FOB China basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 750 |
Tags: Asia Pacific,China,English,Monthly,NEA,PVC
Published on April 2, 2020 4:09 PM (GMT+8)
Last Updated on April 5, 2020 1:55 PM (GMT+8)
