Market players reported to SSESSMENTS.COM that traders in China are aggressively offering localized PVC cargoes of various origins in anticipation of inventory build-up. In the next two to three months, approximately 300,000 tons of ethylene-based PVC cargoes will arrive in China. Despite the weak buying sentiment and expectation on rising supply, sellers attempted a price increase of between CNY50-100/ton on April 24 compared to levels reported on Monday (April 20) hinging on the upward movement in the futures market that started to move up from Wednesday (April 22). September 2020 PVC futures on the Dalian Commodity Exchange settled at CNY5,365/ton ($758/ton) by Friday settlement, up CNY125/ton ($18/ton) from Wednesday. On account of the firmer PVC futures, offers for localized cargoes of Thailand, India and South Korean origin up by CNY100/ton ($14/ton) while local spot acetylene-based PVC by CNY50/ton ($7/ton).
From the import market, a China-based trader informed that a Thai PVC producer has adjusted down offers by $10/ton compared to last week. ‘’Our customer’s buy idea is at $630/ton on LC at sight, CIF China main ports basis. However, we are unsure whether the supplier will accept or not,’’ the trader told SSESSMENTS.COM. In Southeast Asia, offers for May shipment of Thai origin reported with a hefty reduction of between $160-200/ton compared to April.
