Softer futures prices coupled with fierce competition has steered Chinese producer to adjust local and export PVC offers. This week, SSESSMENTS.COM noted that PVC prices in the futures market dropped for two days in a row. On Tuesday, March 24, May 2020 PVC prices on the Dalian Commodity Exchanged dropped by CNY160/ton, open at CNY5,740/ton by morning trading session. Following suit, an acetylene-based PVC producer also lowered their local offers by CNY50-100/ton ($7-14/ton) from last week. More added, the producer is rendering a rule for their customer to not to cancel the orders despite the downtrend in the market. In return, the producer will provide a discount for the next order; as such, their sales this week are not that bad. Recently, the producer noticed that some converters who produce PVC floor and PVC shoe pad have lost some orders from the export market due to the Coronavirus outbreak.
Similarly, the producer applied a hefty downward adjustment of $50/ton on a weekly comparison for export offers. The price reduction was made following the weak buying sentiment and fierce competition in the export market. So far, no deals concluded from the producer’s end. In the days to come, the producer opined to SSESSMENTS.COM that there is no sign for prices to rebound amid the turmoil market. PVC prices are expected to hover at the current level for at least until the Coronavirus outbreak is controlled.
