Print

As deep seas cargoes from the USA are pouring in at competitive prices while domestic demand is waning ahead of the traditional slow demand season, the risk of a weakening trend is mounting. Earlier this week, major Chinese PVC producers meet in the PVC Northwest United Body conference and agreed on a pricing framework in an effort to minimize heavy speculation that could drive market out of order.

The pricing framework is set for six months as shown in the following table:

Would this really help the market? At the moment, the impact is minimal.

This week local carbide based PVC continue to move lower by CNY50-100/ton ($7-15/ton) while ethylene based PVC slashed CNY200/ton ($29/ton) on falling futures prices and soft buying interest.

A market participant, who attended the conference said, “Producers have not worked out on measures in the event market run out of the pre-set range. Therefore, we think trend would still depend on supply-demand fundamental.”