Local acetylene-based PVC offers on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)
A Chinese trader contacted by SSESSMENTS.COM highlighted reasons behind the polar opposite movement of acetylene-based PVC inventory in eastern and southern areas. As of Monday morning, July 6, inventory level of acetylene-based PVC in coastal China recorded at 276,100 tons, digested by 9,900 tons. A significant reduction of 11,500 tons recorded in South China, stood at 59,500 tons. Contrastingly, the inventory in East China stood at 216,600 tons, accumulated by 1,600 tons. All compared to last week's levels. Behind the contrasting movement, the trader explained that the huge drop in South China supported by a considerable amount of purchases made by some big converters in the area. Whereas in East China, the digestion is obstructed by the slow sales for finished products amid the traditional low season.
In terms of prices, the latest offers for local acetylene-based PVC cargoes from both producers and traders’ end are mostly hiked between CNY50-100/ton ($7-14/ton) as compared to last Monday’s levels. The increment is in-line with the firmer futures market prices. As SSESSMENTS.COM noted, September 2020 PVC futures on the Dalian Commodity Exchange increased by CNY35/ton ($5/ton) day on day, settling at CNY6,350/ton ($897/ton) by Monday (July 6) settlement.
In the import market, most suppliers are now waiting for August shipment offers from the leading Taiwanese PVC producer. The trader personally believes that August shipment offers will likely decrease between $20-50/ton considering the weak demand in several countries, especially in India and Southeast Asia market. Even, demand in the China market is also considered not good, the trader further added to SSESSMENTS.COM.
Tags: Asia Pacific,China,English,NEA,News,PVC
Published on July 6, 2020 6:05 PM (GMT+8)Last Updated on July 6, 2020 6:05 PM (GMT+8)
