A China-based trader informed SSESSMENTS.COM that PVC prices had been stimulated by market players’ actions. Offers for acetylene-based and ethylene-based PVC in South China on Monday, May 25, were at CNY6,100-6,200/ton ($854-868/ton) and CNY6,200/ton ($868/ton) respectively with an increase of CNY50/ton ($7/ton) from last week’s offers for both cargoes. All offers were on cash, EXW South China basis and including 13% VAT.
The increases in offers were influenced by several factors as revealed by the trader, including limited supply in Southern China; thus the prices in that area are higher than in East China, and the impact of imported PVC has not yet reflected in the China market. As reported to SSESSMENTS.COM as of May 25, the inventory level of acetylene-based PVC in coastal China stood at 367,400 tons, down by 29,400 tons from last week's level with inventory details in Eastern China stood at 267,600 tons with a decrease of 15,200 tons, while in South the inventory was at 99,800 tons, dropped by 14,200 tons.
With most converters still maintaining purchases based on need, downstream inventory levels are still low. "The local demand for finished goods is considered satisfactory, but now the export market for PVC end-products is still not recovered," as told by the trader which extend information from the converters. For price outlook, SSESSMENTS.COM was told that local PVC prices are still able to go up due to several factors such as tight supply amid maintenance shutdown and government plan to stimulate the market.
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