PVC prices are moving in China market, which triggers market players to prepare their game plans going forward. Trader informed SSESSMENTS.COM that acetylene-based PVC cargoes offers were at CNY6,400/ton ($903/ton), up by CNY1,000/ton ($141/ton) on the monthly comparison. Offers on cash, EXW China basis and including 13% VAT. The trader told that prices that continue to show an upward trend make both converters and traders have to find ways to replenish their inventory without stashing out lots of money after previously missing out on opportunities to take cargoes when prices were low last month.
Demand speaking, the trader commented that the market is back to normal activities as more and more government construction projects are running to spurring economic development. Although PVC consumption is lifted from the construction sector, SSESSMENTS.COM noted that consumption by other sectors was still affected by COVID-19. On the production sector, some local and overseas producers are undergoing maintenance shutdown or will have maintenance shortly which will impact supply condition.
Speaking of outlook stated by the trader, PVC prices have a small chance to drop supported by factors where oil prices are more likely to be firm in the near terms as it almost has returned back to the level before Lunar New Year (January 25).
