As told to SSESSMENTS.COM, a Chinese producer decided to maintain the status quo on local PVC offers despite futures market gains. A source from China’s second-largest acetylene-based PVC producer revealed that even though futures PVC prices captured stronger, the offer given to the local market was kept stable from last week at CNY5,400/ton ($764/ton) on cash, EXW China basis and including 13% VAT. September 2020 PVC prices in the Dalian Commodity Exchange increased CNY145/ton ($20.5/ton) as compared to Thursday, April 30, before the Labor Day holiday, settled at CNY5,620/ton ($796/ton) on Wednesday, May 6.
The producer also paid more attention to the export market conditions. The producer commented to SSESSMENTS.COM that lockdown relaxation in India as an export destination is vital for the PVC market outlook. Despite most factories in India, except the ones located in Delhi and Mumbai have been allowed to resume production, PVC consumption in India is still low. Citing that high PVC demand comes from Delhi and Mumbai. Hence, the overall demand from local and export markets remains weak at the moment, leave immense pressure on PVC producers in China.
Click below to view related stories and content on China PVC:
RumourSSESSMENTS: Localized PVC Prices In China Market Hovering Near New Threshold Level
NewsSSESSMENTS: Competitive Localized PVC Prices In China To Put More Pressure On Local Producers
WeeklySSESSMENTS: China PVC Prices W/C April 27
