Print

Chinese players returned from the long National Day holiday to witness a deep reduction in local PVC prices for both ethylene and carbide based cargoes. Latest market levels indicated CNY300-400/ton ($45-62/) reduction from the pre-holiday term, due to weaker than expected demand.

Currently, ethylene based PVC stands in the range CNY7200-‎7400/ton ($935-961/ton without VAT) and carbide based PVC at CNY6650-6900/ton ($864-896/ton without VAT), all based on EXW China, cash term.

The ban of major construction works in the capital city – Beijing from 15 November 2017 to 15 March 2018 affected demand to a certain degree, players said. The ban includes all contraction of road and water projects, as well as demolition of housing.

A producer said, “Surprisingly, post holiday demand is much weaker than expected. We give a room of another CNY200/ton ($30/ton) for negotiation, and still face difficulties to attract buying interest. Situation might worsen if futures market continue to follow the soft trend.”

Another producer for carbide based PVC added, “Inventories pressure built up as arbitrage traders decided to divert cargoes to spot market after futures trade give no yield. Prices might drop further as export window also seems smaller.”

The situation might put more pressure on the PVC market in November, as overseas suppliers are about to announce new prices. Chinese buyers are monitoring the market movement and several have voiced the expectation for softer prices.