Local PVC prices in China continue to advance north

After hitting multi month’s low levels during late April, domestic PVC prices in China market continue to revive, adding another CNY100/ton ($14/ton) week on week basis for both carbide based and ethylene based cargoes.

With the firmer trend stay in place for two weeks in a row, which accounted for a total increase of CNY150-200/ton ($22-29/ton), carbide based PVC below the CNY5600/ton ($695/ton without VAT) mark is no longer available this week. A producer commented, “Demand however has not shown any improvement, which is rather disappointed. We are waiting for fresh offers from international suppliers for June shipment before deciding on our next move.”

Chinese players believed that local prices have reached the bottom, yet room for any significant hike is rather limited, especially with soft international market at the background. “We are holding firmer on our export cargoes as well, however, if other overseas suppliers cut June shipment offers, we might have little opportunity to lift our prices,” another carbide based PVC maker said. The source added that firmer domestic prices and perceived tightening supply ahead of the summer season are the main drivers behind their firm stance.  

Local prices in China currently stand at CNY5700-5800/ton ($706-718/ton without VAT) for carbide based PVC and at CNY6400-6500/ton ($793-805/ton without VAT) for ethylene based PVC, all based on EXW China, cash term.