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Chinese players reported that several local suppliers have implemented a CNY100-200/ton ($15-29/ton) hike on both carbide and ethylene based PVC this week citing support from strong futures trading. With this, domestic PVC prices in China currently stand in the range CNY6100-6200/ton ($762-775/ton without VAT) for carbide based PVC and at CNY6400/ton ($800/ton without VAT) for ethylene based PVC, all based on EXW China, cash term.

Dalian Commodity Exchange contract 1709 for PVC has been firming up since 21 June 2017, encouraging arbitrage takers to channel spot cargoes to futures ground to leverage price differences. On the other hand, players also reported seeing less availability for carbide based PVC in the market due to the on-going pipeline upgrade work in Northern area that limit transportation.

On the other hand, demand from converters side remains very much mediocre as stricter environmental regulation continues to affect many plants. “However, we hope buying interest in China would improve toward July with traditional high demand season would start in August-September period,” a trader commented.