Local ethylene-based PVC on cash, FD China basis (including 13% VAT in CNY term, excluding VAT in USD term)
As contacted by SSESSMENTS.COM, a Chinese PVC producer is voicing out positive pricing outlook, hinged on manifold factors. Following the uptrend in the futures market, local offers for both acetylene-based and ethylene-based PVC in the open market generally increased between CNY50-100/ton ($7-14/ton) on a weekly comparison. From the producer’s end, the allocation for July delivery has been sold out and the company has started offering for August delivery. Compared to a fortnight ago, the producer’s offers for ethylene-based PVC increased by CNY250/ton ($36/ton). Speaking of feedback, the producer expects that the response will be satisfactory considering the expectation for higher prices. According to the producer, the demand in this traditional low season, so far, is not as slow as previously predicted. On the production sector, the producer’s plant is running at a full rate.
Other than the futures market movement, the firmer PVC prices also supported by the expectation that VCM supply will be more limited onward as some producers plan to conduct maintenance shutdown in August-September. Further explained to SSESSMENTS.COM, the Chinese government is implementing a new investment policy to boost the market and it should have kept the offers firm. From the import market, the producer opined that August shipment offers from the leading Taiwanese PVC producer will be slightly higher due to the limited supply and higher production costs.
Tags: Asia Pacific,China,English,NEA,News,PVC
Published on July 13, 2020 5:41 PM (GMT+8)Last Updated on July 13, 2020 5:41 PM (GMT+8)
