A Chinese trader revealed to SSESSMENTS.COM that China’s spot PVC prices have gained ground, finding support from an uptrend in the futures market. September PVC futures on Dalian Commodity Exchange consistently settled above CNY6,000/ton-threshold, increased CNY125/ton ($18/ton) week-on-week, settling at CNY6,280/ton ($886/ton) by Monday (June 8) settlement. So far, domestic PVC prices in China have held firm on the back of upswings in the futures market. However, overall buying sentiment remains flat, with a large number of converters purchasing their cargoes on an as-needed basis. Considering the current market situation, the trader maintained a stable offer level for local acetylene-based and ethylene-based PVC cargoes as compared to last Friday’s levels. “Today, spot PVC prices in China have largely been unchanged from the last trading day,” the trader added.
On the supply front, the trader informed that China’s domestic acetylene-based PVC inventory is returning to a healthy level. As of Monday morning, June 8, the inventory level of acetylene-based PVC in coastal China stood at 311,900 tons, posting a decline of 21,000 tons from last week. The inventory level in South China recorded a decline of 8,000 tons from a week earlier, stood at 75,000 tons. While in East China, the inventory level stood at 236,900 tons, a reduction of 13,000 tons as compared to the same period. The current domestic inventory level is reportedly quite similar to the previous year’s level, which implies the market appears to be returning to normal after a month-long closure over the coronavirus pandemic. SSESSMENTS.COM supply and demand database noted that China’s domestic acetylene-based PVC inventory level in the same period last year captured at 304,000 tons.
For the outlook, the trader voiced out to SSESSMENTS.COM that a further increase in local PVC prices is not a viable option in the days to come as no strong demand fundamentals to support any form of price increases. As such, local PVC prices are projected to remain stable at the current level.
