Data obtained by SSESSMENTS.COM showed that local PVC prices in China have been adjusted down remarkably, nearing CNY5,000/ton ($704/ton)-threshold level. Following the decrease in PVC prices in the futures market, offers for acetylene-based PVC from a local producer dropped between CNY500-600/ton ($70-84/ton) on a weekly comparison. Likewise, local acetylene-based PVC offers via a trader declined between CNY200-300/ton ($28-42/ton) compared to the same period. The trader managed to sell the cargoes for a small quantity at the same level to the initial offer.
SESSMENTS.COM was told that the ample domestic supply as the market has been muted ever since Lunar New Year, coupled with weak demand due to the global Coronavirus outbreak are the reasons for the drastic drop in local PVC prices. While for the export market, the global markets have slowed down amid the Coronavirus pandemic. Buyers are not keen on purchasing cargoes due to a concern on shipment uncertainty coupled with the slow finished products demand. Moreover, with lockdown in several countries, some buyers are asking to delay or cancel orders. As such, the country’s second-largest acetylene-based PVC producer decided to stopped offering to export market since last week. For the outlook, Chinese market players opined that the PVC market will be clearer once the Coronavirus outbreak across the globe has been controlled.
