One of China’s largest acetylene-based PVC producers stated to SSESSMENTS.COM that the company has decided to cease offering acetylene-based PVC cargoes to the export market since the week commencing March 23 as Coronavirus spreads globally. According to the producer, a sharp rise in new Coronavirus infections in several regions has led to a larger decline in export demand. “Most export customers are worried that cargoes shipment and delivery may be delayed for a few weeks as the Coronavirus outbreak is disrupting the global supply chain. Even some customers are asking to delay or cancel their orders. Therefore, we decided to stop offering to the export market temporarily,” the producer said.
In the domestic market, trading activities remain limited despite a huge decline in new infections in China. In terms of prices, the producer initiated a price reduction of CNY50/ton ($7/ton) for acetylene-based PVC cargoes in line with the downward momentum in the futures market. As of Monday, March 30, SSESSMENTS.COM noted that May 2020 PVC prices on the Dalian Commodity Exchange dropped by CNY265/ton ($37/ton) from last Friday's level as observed at 4PM GMT+8, open at CNY5,295/ton ($746/ton) by morning trading session. In the previous week, the range of acetylene-based PVC offers in local China market range between CNY5,520-6,100/ton ($778-859).
