A Chinese trader contacted by SSESSMENTS.COM’s team on May 11 revealed the latest PVC price and demand trend in the China market. According to the source, local acetylene-based PVC prices have increased by 10% as compared to late April’s level or between CNY400-500/ton ($57-71/ton). While compared to last week, the offers have gone up between CNY50-100/ton ($7-14/ton). For ethylene-based PVC, offers for local materials increased between CNY100-200/ton ($14-28/ton) as compared to the same period. For localized cargoes, market talks have it that localized ethylene-based PVC cargoes of Southeast Asia and US origin went up by CNY200/ton ($28/ton).
The source further explained several factors that provide some supports for acetylene-based PVC prices to increase. Although crude oil prices are on the soft note, cost of calcium carbide is still on the upward trend. As such, the downtrend in crude oil prices is not significantly affected prices for acetylene-based PVC. Besides, supply is not abundant since the traditional maintenance season took place. Last but not least, there is a consensus on firmer prices for the upstream producers, SSESSMENTS.COM was told.
For ethylene-based PVC, the trader stated a different reason behind the upward price adjustment. SSESSMENTS.COM was informed that offers for ethylene-based PVC also increased in line with the uptrend in acetylene-based PVC. Besides, supply is relatively tight as a result of the good sales in late April and early of last week left. Moreover, crude oil prices are on a stable to firmer note lately.
Demand-wise, the infrastructure project has provided support for domestic PVC demand to remain healthy. While for the end-products, the source opined to SSESSMENTS.COM that demand from the export market would be better week by week as the Coronavirus outbreak in other countries is eased day by day. However, PVC prices in the local market will have limited room to increase in the foreseeable future, taking into account the arrival of imported cargoes.
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