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Domestic PVC market in China has been following an extended period firming trend since mid June 2017 on tightening supply, stemming from a series of plant reduced operation rate amid strict environmental inspection. Prices started to slide since earlier this month after hitting the highest levels this year, CommoPlast data showed.

Market deterioration seems quicken this week with local suppliers slashed offers for both grades by CNY200-300/ton ($30-45/ton) in the absence of buyers. “Many of our customers are leaving for the long National Day holiday, leaving market with little real activities. Room for further reduction is still there but limited, as supply remains tight,” a trader commented.

Players are expecting that the current downtrend might be stabilized soon with demand in overseas markets started picking up, which could reopen export windows for local producers. Another market source added, “Demand for PVC within China normally holds steady during the final quarter of the year and we are putting heavy hope on the post-holiday restocking activities. Market shall enter the stabilization state soon.”

Local PVC prices in China currently stand at CNY7600-7800/ton ‎($981-1007/ton without VAT) for ethylene based and at CNY7050-7100/ton ($910-917/ton without VAT) for carbide based PVC, all based on EXW China, cash term.