Growing concern regarding supply chain in Xinjiang region has sparked an adjustment on local PVC prices. A Xinjiang-based PVC producer informed SSESSMENTS.COM that local offers for acetylene-based PVC increased between CNY50-100/ton ($7-14/ton) compared to last Friday’s level. The current offers from the producer’s end are available at CNY6,600/ton ($943/ton) on cash, EXW basis and including 13% VAT. The producer said that the price change as a result of the cutback plan on production rate by PVC producers in Xinjiang with region going into another lockdown. Production rate reduction will be carried out by producers due to uneasiness regarding upstream raw materials supply as well as logistics and transportation. The producer is also contemplating whether to announce offers to the export market as the demand window has not yet appeared in the destination countries.
Speaking about overall production results, the producer told SSESSMENTS.COM that PVC manufacturers in Xinjiang accounted for nearly 18% of the whole country, in which 90% of PVC needs to be sold outside of Xinjiang. For now, the producer acknowledges that the level of production has yet to be affected while raw materials in their side are still sufficient. Looking ahead, the producer cannot estimate the direction of the market while uncertainty lingers.
