Supply-Demand Factors Determined Current China’s PVC Price Trend
- Local acetylene-based PVC offers adjusted considering buying sentiment
- Supply conditions propped up local ethylene-based PVC offers
- Overall demand remains unmoved and expected to be stagnant
Market sources in China cited that supply and demand factors have determined the current local PVC price trend in the country. On the week commencing July 27, SSESSMENTS.COM noted that local prices for acetylene-based PVC were dragged down by the weak buying sentiment, while local ethylene-based PVC prices were able to sustain as supported by the limited supply. As noted, local offers for acetylene-based PVC cargoes from producers’ end were stable to softer between CNY30-50/ton ($4-7/ton). To lure buyers, one of the producers expressed their sell idea at CNY100/ton ($14/ton) lower than the initial offer levels. Via a trader, local offers for the same material went down by CNY100/ton ($14/ton). For ethylene-based PVC cargoes, the offers remain firm at CNY7,000-7,100/ton ($999-1,013/ton) on cash, EXW China basis and including 13% VAT. To the export market, offers for acetylene-based PVC cargoes captured stable at $880/ton on LC at sight, FOB China basis. All offers are on a weekly comparison. More added, an acetylene-based PVC producer acknowledged that their export offers are deemed unattractive as they offered at quite a high level; hence, deals are rather difficult to be concluded. However, the producer perceived that it seems pointless to adjust down the price considering the dull demand in the destination countries.
As reported to SSESSMENTS.COM, demand for PVC resins in the domestic market remains sluggish this week. Buyers keep buying on a hand-to-mouth basis, even some others decided to put off procurement activities on the back of slow sales for finished products. Players cited that this time of the year is counted as the low season for PVC end-products. On the production sector, some players said that the production activity, especially for finished products, has been disrupted by the rainy season. On the supply side, as of July 27, the total acetylene-based PVC inventory in coastal China stood at 262,600 tons, digested by 1,900 tons from last week. In South China recorded at 37,500 tons, decreased by 4,000 tons, while in East China, stood at 225,100 tons, increased by 2,100 tons.
For the outlook, the majority of Chinese market players contacted by SSESSMENTS.COM believe that local PVC prices, particularly for acetylene-based PVC, will hover at the current levels or may move further down considering buying sentiment. Meanwhile, players opined that demand will remain stagnant in the upcoming week.
