Chinese players: Continuous falling local PVC market might affect import ground

Demand for PVC in China remains relatively slow this week, players said, with spot offers for both ethylene and carbide based cargoes fell another CNY100-200/ton ($15-30/ton) week on week. Demand in the country is expected to weaken in the coming month, which might drag import market down further.

Citing a number of governmental measures to reduce air pollution during the winter, including the ban in construction work in Beijing, a trader said, “Deals are very mediocre even after the discounts. Local suppliers continue to seek export opportunity and this might affect the sentiment in overseas market too.”

Players are expecting December shipment offers to reduce another $20-30/ton compared to November pointing to the below-expected demand condition in both China and India. “Even Southeast Asia buyers are not eager to make large purchases. We are hoping that with the restart of local converters, who have been shutdown over the past months on government order, would help to stimulate domestic buying interest. And at the moment, we remain cautious about the near term outlook,” a Chinese producer said.

Local PVC offers currently stand at CNY6500-6600/ton ($840-854/ton without VAT) for carbide based and at CNY6800/ton ($880/ton without VAT) for ethylene based cargoes, all based on EXW China, cash term.