Local PVC offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)
China PVC market is buoyed by supply condition, a Chinese trader commented to SSESSMENTS.COM. As of July 14, the inventory for acetylene-based PVC in coastal China recorded at 260,500 tons, a reduction of 15,600 tons. In South China, the inventory decreased by 16,500 tons stood at 43,000 tons. Contrastingly, the inventory in East China recorded at 217,500 tons, increased by 900 tons. All compared to last week’s levels. In terms of prices, the trader reported that local offers for both acetylene-based and ethylene-based PVC cargoes captured higher between CNY150-200/ton ($21-28.5/ton) from last week following the increment in the futures market. At the moment, futures prices are being supported by the government’s funding. Other than that, some converters are stimulated to submit orders due to the expectation of tighter supply for the upcoming delivery.
Based on the information received, the operating rates from downstream factories remain stable although the digestion rate for some finished products has been affected due to the flood. While the demand for PVC film and PVC granulation is still ongoing. Pertaining to the outlook, the trader expressed an opinion to SSESSMENTS.COM that the chance for PVC prices in China to drop is slim since producers and traders have relatively tight supply while the fundamental demand exists.
Tags: Asia Pacific,China,English,NEA,News,PVC
Published on July 14, 2020 5:31 PM (GMT+8)Last Updated on July 14, 2020 5:31 PM (GMT+8)
