Local PVC offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)
A Chinese trader revealed to SSESSMENTS.COM on the reason behind the current PVC digestion rate. As of Monday, April 27, the coastal inventory for acetylene-based PVC recorded at 451,500 tons, a reduction of 17,000 tons from last week. In detail, the inventory in South China decreased by 11,000 tons, stood at 147,000 tons. While in East China, the inventory recorded at 304,500 tons, decreased by 6,000 tons. Although the inventory has been digested, the trader stated that it is because of the shutdown at local producers’ plants not because of the good sales or robust demand from converters. Currently, most converters are still running at 50-60% from the normal operating rate and keep the procurement on a hand-to-mouth basis.
According to the information received from the converters, finished product orders remain limited, especially from the export market. Hence, the trader opined that the supply glut would sustain. “Although China will be in a holiday for five days for the Labour Day (May 1-5), we do not think that the sales will be good this week as most converters already have sufficient stocks,” the trader added to SSESSMENTS.COM.
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Tags: Asia Pacific,China,English,NEA,News,PVC
Published on April 27, 2020 3:27 PM (GMT+8)Last Updated on April 27, 2020 3:27 PM (GMT+8)
