As SSESSMENTS.COM noted, a Chinese PVC producer is reserving its allocation on an expectation of positive pricing outlook. In comparison to a week earlier, the offers for acetylene-based PVC from a local producer captured higher between CNY150-200/ton ($21-28/ton) supported by the increases in futures market prices. To date, the producer has managed to close some deals at the initial offer level. Although the allocation for June delivery has not been sold out yet, the producer stated that the company deliberately keeps some stocks on hand as believed prices will move further up in the near future.
Meanwhile, another Chinese acetylene-based PVC producer informed SSESSMENTS.COM that the company has not announced the offers yet for this week. However, the offers will most likely be adjusted upward considering the uptrend in the futures market, satisfactory sales in the previous week as well as the ongoing maintenance shutdown at the producer’s PVC plant. To the export market, the offers remained absence as the producer prefers to focus on selling in the local market.
Pertaining to the outlook, both producers opined to SSESSMENTS.COM that there is a possibility for acetylene-based PVC offers to increase around CNY200/ton ($28/ton) in the near term as the demand from downstream factories is gradually improving coupled with the current limited availability of spot cargoes.
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