China’s Local PVC Prices Expected To Sustain Despite The Pressure From Import Cargoes
- Last week’s PVC price trend in local market sustained
- Export PVC offers unworkable for now, producers stated two factors behind it
- Maintenance season would aid local prices from the pressure of arrival of import cargoes
SSESSMENTS.COM noted that local PVC prices expected to sustain despite the pressure from the import cargoes that soon will arrive in the China market. On the week starting May 18, market players reported that local PVC offers remain on an uptrend as last week. For acetylene-based PVC cargoes, local offers from several producers increased between CNY100-200/ton ($14-28/ton) on a weekly comparison. Likewise, local offers for ethylene-based PVC also surged by CNY300/ton ($42/ton) as compared to the same period. Producers further explained that the rebound in local prices is still supported by the firmer futures prices and maintenance shutdown at several PVC plants. In the import market, most players are currently waiting for June shipment offers from the leading Taiwanese PVC producer. At the same time, a producer predicted that June shipment offers from the Taiwanese producer to the China market will be raised between $20-30/ton from May. To the export market, one of the local producers lamented that the export prices are not workable in the export market lately, considering the current export market condition amid Coronavirus pandemic and better profit margin in the local market.
As reported to SSESSMENTS.COM, the overall demand for PVC resins this week remains stable to slightly increased from last week. While for end-products, the sales for PVC pipe and PVC pelletizing are considered good, but for PVC sheet, film and other finished goods, the demand is rather slow. On the supply side, as of May 18, inventory level of acetylene-based PVC in coastal China recorded at 396,800 tons, dropped by 14,400 tons. A reduction of 4,000 tons recorded in South China, stood at 114,000 tons. While in East China, the inventory captured at 282,800 tons, decreased by 10,400 tons. All compared to last week's level. On the plant news, Tangshan Sanyou International Industry Co Ltd reportedly will conduct maintenance shutdown at its 400,000 tons/year PVC plant for 14 days starting from June 9, 2020.
Looking ahead, some market players contacted by SSESSMENTS.COM believe that local PVC prices will remain stable at the current level despite the pressure of import cargoes in the days to come. Market participants cited that the maintenance season will prop up local prices. Additionally, the market outlook for PVC in China is quite positive, players opined.
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