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MonthlySSESSMENTS: April China PVC Prices

Author: SSESSMENTS

  • Slow demand and competitive localized cargoes threatened PVC prices in China during April
  • Decrement showed on inventory level, owing to maintenance shutdown at producers’ plant
  • Local PVC price trend in April are expected to prolong

PVC prices in China’s local market were on the red note at the beginning of April. An acetylene-based PVC producer in the country reported a downward price adjustment on April 1, by CNY200/ton ($28/ton) as compared to March 30. The plunge on export and domestic demand, as well as the high inventory level, was the major ground of the downward price correction, SSESSMENTS.COM was told. Moving towards the next week, offers for acetylene-based PVC was successfully increased between CNY50-200/ton ($7-28/ton) as supported by the firmer futures market. The uptrend on PVC prices lasted until the week commencing April 13. Offers for local acetylene-based PVC increased between CNY30-100/ton ($4-14/ton) and ethylene-based PVC between CNY30-200/ton ($4-14/ton). However, the uptrend on PVC prices did not last for a long time as localized cargoes were being offered at attractive levels. In the last week of the month, acetylene-based PVC decreased between CNY50-100/ton ($7-14/ton), while for ethylene-based PVC, the offers were stable to decrease between the same amount as acetylene-based PVC. Price comparison is on a weekly interval. 

In the import market, May shipment offers from the leading Taiwanese PVC producer surfaced with a notable downward price adjustment of $160/ton as compared to April’s level. Despite the significant changes, Chinese market players opined to SSESSMENTS.COM that the offers were still too high and did not meet buyers’ expectations. Sources said the prices should be lower by at least $200/ton to make it workable. Likewise, Japanese PVC cargoes were also down by $160/ton from April’s level. On the week commencing 27, deals for South Korean ethylene-based cargoes captured $20/ton lower than the initial offers available a fortnight ago. In the export market, at the beginning of the month, an acetylene-based PVC producer was offering based on buyers’ inquiries. While an ethylene-based PVC producer adjusted down the export offers by $20/ton as compared to a week earlier. 

In general, demand for PVC resins in April was sluggish. Most converters reported only running the production between 50-60% from the normal rate as demand for the end products especially from the export market are limited due to the Coronavirus outbreak. A slight improvement captured on the week commencing April 6 and April 13 as PVC prices in the futures market showed an increment. However, the volume of purchases was small. On the supply front, SSESSMENTS.COM noted that inventory of acetylene-based PVC in coastal China at the beginning of the month stood at 483,600 tons. The level of inventory went up by 1,100 tons on the week commencing April 13. In the last two weeks of April, the inventory decreased by 33,200 tons in total on the back of maintenance shutdown at producers’ plant. On the week commencing April 20, inventory level of acetylene-based PVC in East China even recorded 20-40% lesser than a week earlier. Though the inventory slacked down, the amount is still considered as huge. 

Entering into May, most Chinese PVC market participants believe that local PVC prices will move down further considering the pressure from the imported cargoes as well as inventory in the local market. Demand-wise, the Labour Day holiday at the beginning of May expected to affect the demand for PVC, as stated to SSESSMENTS.COM.

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Transaction for local acetylene-based PVC between April 1 to April 3 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaOffer Given4,900-5,250611-655
ChinaOffer Received5,300661

Transaction for import ethylene-based PVC between April 1 to April 3 on LC 90 Days, CFR China Main Port basis

OriginTransaction TypeOffers (USD/ton)
USAOffer Received720

Transaction for local PVC between April 6 to April 10 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaAcetylene-basedOffer Given5,100-5,450636-680
ChinaAcetylene-basedSold5,250-5,300655-661
ChinaEthylene-basedOffer Given5,400-5,700673-711
ChinaEthylene-basedOffer Given5,600*698
Description: *Offers on FD basis

Transaction for import ethylene-based PVC between April 6 to April 10 on LC at sight, CIF China Main Port basis

OriginTransaction TypeOffers (USD/ton)
South KoreaOffer Given630
South KoreaBuy Idea600
South KoreaOffer Received650
TaiwanOffer Given750-760

Transaction for export acetylene-based PVC between April 6 to April 10 on LC at sight, FOB China basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given730
ChinaBuy Idea620

Transaction for local/localized PVC between April 13 to April 17 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/tonDelivery TermDelivery Location
ChinaAcetylene-basedOffer Given5,300-5,550661-692EXWChina
ChinaAcetylene-basedOffer Given5,400-5,800673-723EXWSouth China
ChinaAcetylene-basedOffer Given5,400-5,550673-692EXWEast China
ChinaEthylene-basedOffer Given5,700-5,800711-723EXWChina
ChinaEthylene-basedOffer Given5,400-5,450673-680EXWEast China
ChinaEthylene-basedOffer Given5,900736FDEast China
ChinaEthylene-basedSold5,800-5,900723-736FDEast China
IndiaEthylene-basedOffer Received5,300661EXWChina
ThailandEthylene-basedOffer Received5,500686EXWChina
USAEthylene-basedOffer Received5,400-5,450673-680EXWChina

Transaction for import ethylene-based PVC between April 13 to April 17 China Main Port basis

OriginTransaction TypeOffers (USD/ton)Payment TermShipment Term
TaiwanSell Idea610-620LC at sightCFR
TaiwanOffer Received680LC at sightCFR
IndonesiaBid Received600-620LC at sightCIF
IndonesiaSell Idea600-620LC at sightCIF
South KoreaBid Given600-620LC 90 DaysCIF
South KoreaSell Idea640LC 90 DaysCIF
Southeast AsiaOffer Received600-620LC at sightCIF
ThailandOffer Received665LC at sightCIF
ThailandBuy Idea630-635LC at sightCIF
ThailandBid Given625LC at sightCIF

Transaction for export acetylene-based PVC between April 13 to April 17 on LC at sight, FOB China basis

OriginTransaction TypeOffers (USD/ton)
ChinaSold720

Transaction for local/localized PVC between April 20 to April 24 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/tonDelivery Term
ChinaAcetylene-basedOffer Given5,400-5,800673-723EXW
ChinaAcetylene-basedSold5,300-5,800661-723EXW
ChinaEthylene-basedOffer Given5,700-5,900711-736EXW
ChinaEthylene-basedOffer Given5,700-5,900711-736FD
ChinaEthylene-basedSold5,800-5,900723-736FD
BelgiumEthylene-basedOffer Given5,300661EXW
IndiaEthylene-basedOffer Given5,200-5,300648-661EXW
IndonesiaEthylene-basedOffer Given5,300661EXW
South KoreaEthylene-basedOffer Given5,250-5,380655-671EXW
ThailandEthylene-basedOffer Given5,300-5,330661-665EXW
UkraineEthylene-basedOffer Given5,300661EXW
USAEthylene-basedOffer Given5,300661EXW

Transaction for import ethylene-based PVC between April 20 to April 24 China Main Port basis

OriginTransaction TypeOffers (USD/ton)Payment TermDelivery Term
JapanOffer Given650LC at sightCIF
JapanOffer Given630LC at sightCFR
JapanOffer Received670LC at sightCIF
TaiwanOffer Received650-660LC at sightCIF
TaiwanOffer Given660LC at sightCFR
TaiwanOffer Received610-620LC at sightCFR
ThailandOffer Received650LC at sightCIF
ThailandBuy Idea630LC at sightCIF
USAOffer Received610LC at sightCIF
USASold590LC at sightCIF
USAOffer Received590LC 90 DaysCIF
USABid Given570-575LC 90 DaysCIF

Transaction for export acetylene-based PVC between April 20 to April 24 on LC at sight, FOB China basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given680

Transaction for local/localized PVC between April 27 to April 30 on cash, China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton)Delivery Term
ChinaAcetylene-basedOffer Given5,300-5,650661-705EXW
BelgiumEthylene-basedOffer Given5,270-5,280657-658EXW
BrazilEthylene-basedOffer Given5,300-5,310661-662EXW
ChinaEthylene-basedOffer Given5,700-5,900711-736EXW
ChinaEthylene-basedOffer Received5,800723FD
ChinaEthylene-basedOffer Given5,600-5,650698-705FD
IndiaEthylene-basedOffer Given5,300661EXW
IndonesiaEthylene-basedOffer Given5,300661EXW
JapanEthylene-basedOffer Given5,400673EXW
MexicoEthylene-basedOffer Given5,300-5,310661-662EXW
South KoreaEthylene-basedOffer Given5,300661EXW
TaiwanEthylene-basedOffer Given5,390-5,400672-673EXW
ThailandEthylene-basedOffer Given5,400673EXW
UkraineEthylene-basedOffer Given5,270-5,280657-658EXW
USAEthylene-basedOffer Given5,270-5,350657-667EXW

Transaction for import ethylene-based PVC between April 27 to April 30 China Main Port basis

OriginTransaction TypeOffers (USD/ton)
JapanSold630
South KoreaSold630

Transaction for export acetylene-based PVC between April 27 to April 30 on LC at sight, FOB China basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given680-710

Tags: Asia Pacific,China,English,Monthly,NEA,PVC

Published on May 7, 2020 5:06 PM (GMT+8)
Last Updated on June 10, 2020 11:59 AM (GMT+8)