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Local suppliers in China continue to implement additional hike on PVC cargoes this week as sentiment is boosted by limited supply and surging futures market. CommoPlast data show a week on week increase of CNY100/ton ($15/ton) for carbide based PVC and CNY200-250/ton ($30-37/ton) for ethylene based PVC. Demand is healthier than expected, players said.

A trader claimed to have sold a good quantity to local buyers at the new levels said, “Our allocation for August is soon to sold out. Demand come back sooner than expected and in the near term, we might only focus on local ground since export market does not offer as good margins.”

A carbide based producer added, “Sales have been very smooth this one month and we think this condition might persist in the near term. Our plant is not operating at high rate given the weather condition and reduced availability of carbide feedstock.”

As ethylene based PVC prices hit above the CNY7000/ton threshold this week, players are expecting similar situation for carbide based PVC. As a result, export market might hold stable to firmer in the coming months in spite of diminishing demand in India.

Local prices currently stand at CNY7100-7200/ton ($896-909/ton without VAT) for ethylene based and at CNY6700-6800/ton ($846-858/ton without VAT) for carbide based PVC, all based on EXW China, cash term.