China’s largest acetylene-based PVC producer informed SSESSMENTS.COM on amending local offers following the shift in demand and supply conditions in the country. Since the end of last week, local prices for acetylene-based PVC cargoes have been showing some decreases. Approaching Tuesday, June 23, offers for local acetylene-based PVC cargo from the producer dropped by CNY100/ton ($14/ton) on a weekly comparison. The producer stated that the current downtrend in the local market was driven by the weakened demand for PVC resins on the back of ample supply on converters’ end. Besides, tight supply is no longer able to support local PVC prices since the maintenance season is already over. Let alone most converters are now objecting higher prices.
To the export market, the producer has yet to announce the official offers. At the moment, the producer could only express sell idea; which is at $790-800/ton on LC at sight, FOB China basis. However, such a level might still be unworkable for the export market, the producer commented to SSESSMENTS.COM.
In the near term, the producer opined to SSESSMENTS.COM that the chance for local PVC prices to decrease significantly is rather limited considering the high production costs as well as the supply condition that is still in recovery. But, once import cargoes arrive in the China market, local prices will be threatened. Rumour has it that lots of low priced import cargoes will arrive in the China market around mid-July or August.
