quarterlyssessments-q2-2020-china-pvc-prices

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China PVC market was slow at the beginning of the quarter
Supply was reported tight in May and June
Xinjiang Zhongtai Chemical delayed maintenance shutdown initially scheduled in May to August

SSESSMENTS.COM noted that local offers for both acetylene-based and ethylene-based PVC in China during Q2 of 2020 were mostly on an uptrend. The decrements were only seen in the first and last week of April, then in the last week of June. In the first week of the quarter, local acetylene-based PVC offers were available at CNY4,900/ton ($693/ton) on cash, EXW China basis and including 10% VAT. In this particular week, acetylene-based PVC offers were corrected down by CNY200/ton ($28/ton) compared to offers available at the end of Q1 due to unsupportive demand and high inventory pressure faced by some producers. In the last week of April, offers for acetylene-based and ethylene-based PVC decreased between CNY50-100/ton ($7-14/ton) on a weekly comparison due to competitive localized ethylene-based PVC offers. Throughout May, local ethylene-based and acetylene-based PVC offers were on an uptrend owing to firmer futures prices, limited supply, and healthy demand. The uptrend in acetylene-based and ethylene-based PVC offers sustained until the third week of June. In the last week of the month, offers for acetylene-based PVC were adjusted down between CNY50-100/ton ($7-14/ton) on a weekly comparison following softer futures prices. As for local ethylene-based PVC, offers were stable compared to the same period. By the end of the Q2 of 2020, local acetylene-based PVC offers were above CNY6,000/ton-level ($848/ton) whereas some local ethylene-based PVC offers were already at CNY7,000/ton-level ($990/ton).

For export, offers for acetylene-based PVC were between $680-710/ton on LC at sight, FOB China basis in April. The offers increased for three consecutive weeks in May. In June, some Chinese PVC producers maintained stable export offers on a weekly comparison while others opted to skip offering due to buyers’ resistance to high offers. In the last week of June, market players reported to SSESSMENTS.COM that export offers for acetylene-based PVC already stood at $830/ton with the same payment and delivery terms. For import ethylene-based PVC cargoes, significant downward adjustments were applied on May shipment offers. The leading Taiwanesse PVC producer decreased offers by $160/ton compared to April. Adjustments of the same amount were also applied by a Japanese PVC producer.

On May 19, the leading Taiwanese PVC producer increased offers for June shipment by $40/ton from May shipment to $700/ton on LC at sight CIF China main port basis. Offers from a South Korean producer were also at the same level when the producer firstly announced the offers on May 20. SSESSMENTS.COM was informed that the producer applied an increase of $10/ton a day later due to satisfactory sales. For July shipment, the offers increased further remarkably. Offers from the leading Taiwanese PVC producer increased by $90/ton. Meanwhile, offers from Japanese PVC producers and a South Korean PVC producer went up by $100/ton between $90-120/ton, respectively. Changes on offers for July shipment were compared to June shipment.

China PVC market was slow at the beginning of the quarter. 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 were slow due to the Coronavirus outbreak. In May, demand for PVC was healthy since demand for end products gradually improved, particularly for PVC pipe supported by the real estate and infrastructure projects. Such a condition remained seen until the first half of June. In the second half of June, PVC demand weakened as converters had finished stock replenishments and most were away for holiday due to the Dragon Boat Festival holiday, which was celebrated from June 25 until June 27. On the supply side, the availability of acetylene-based PVC in May and June was limited due to maintenance at some producers’ plants. Likewise, the supply for ethylene-based PVC in the same time frame was also tight due to satisfactory sales. In the production sector, Xinjiang Tianye (Group) Co Ltd shut the company’s 1.4 million tons/year PVC plant for maintenance that was scheduled to last for 20 days on May 7. Tangshan Sanyou International Industry Co Ltd reportedly conducted maintenance at the company’s 400,000 tons/year PVC plant for 14 days starting from June 9. SSESSMENTS.COM was also told that Xinjiang Zhongtai Chemical initially scheduled to conduct maintenance at the company’s PVC plant with a capacity of 1,100,000 tons/year in May, but then delayed to August.

Looking into the Q3 of 2020, market players opined to SSESSMENTS.COM that there might be some downward corrections on both local acetylene-based and ethylene-based PVC offers. However, the adjustment will not be significant as supply will remain tight. Pertaining to demand, market players mentioned that PVC demand in China is expected to soften as traditionally, July to August is a low season for PVC in China.

Range of local/localized PVC transactions in April on cash, EXW China basis (including 13% VAT in CNY term, all equivalent in USD excluding VAT)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton
China	Acetylene-based	Offer Given	4,900-5,800	616-730
China	Acetylene-based	Offer Received	5,300	667
China	Acetylene-based	Sold	5,250-5,800	660-730
Belgium	Ethylene-based	Offer Given	5,270-5,300	663-667
China	Ethylene-based	Offer Given	5,400-5,900	679-742
China	Ethylene-based	Offer Received	5,800	730
China	Ethylene-based	Price List	5,437	684
China	Ethylene-based	Sold	5,800-5,900	730-742
India	Ethylene-based	Offer Given	5,200-5,300	654-667
India	Ethylene-based	Offer Received	5,300	667
Indonesia	Ethylene-based	Offer Given	5,300	667
Japan	Ethylene-based	Offer Given	5,400	679
Mexico	Ethylene-based	Offer Given	5,300-5,310	667-668
South Korea	Ethylene-based	Offer Given	5,250-5,380	660-677
Taiwan	Ethylene-based	Offer Given	5,390-5,400	678-679
Thailand	Ethylene-based	Offer Given	5,500	692
Thailand	Ethylene-based	Offer Received	5,300-5,400	667-679
Ukraine	Ethylene-based	Offer Given	5,270-5,300	663-667
USA	Ethylene-based	Offer Given	5,270-5,450	663-686

Range of import ethylene-based PVC offers in April on LC at sight

Origin	Transaction Type	Offers (USD/ton)	Payment Term	Deliver Term
Far East Asia	Offer Given	630-660	LC at sight	CFR
Far East Asia	Offer Given	630-760*	LC at sight	CIF
Far East Asia	Offer Received	610-680	LC at sight	CFR
Far East Asia	Offer Received	650-670**	LC at sight	CIF
Far East Asia	Bid Given	600-620	LC 90 Days	CIF
Far East Asia	Buy Idea	600	LC at sight	CIF
Far East Asia	Sell Idea	610-620	LC at sight	CFR
Far East Asia	Sell Idea	640	LC at sight	CIF
Far East Asia	Sold	630	LC at sight	CIF
North America	Offer Received	610	LC at sight	CIF
North America	Offer Received	590***	LC 90 Days	CIF
North America	Offer Received	720	LC 90 Days	CFR
North America	Bid Given	570*-575*	LC 90 Days	CIF
North America	Sold	590**	LC at sight	CIF
Southeast Asia	Offer Received	600-665	LC at sight	CIF
Southeast Asia	Bid Given	625	LC at sight	CIF
Southeast Asia	Bid Received	600-620	LC at sight	CIF
Southeast Asia	Buy Idea	630-635	LC at sight	CIF
Southeast Asia	Sell Idea	600-620	LC at sight	CIF

Description: *April shipment **May shipment *** June shipment

Range of export PVC transactions in April on LC at sight, FOB China basis

Origin	Product	Transaction Type	Offers (USD/ton)
China	Acetylene-based	Offer Given	680-710
China	Acetylene-based	Sold	720
China	Ethylene-based	Offer Given	730
China	Ethylene-based	Buy Idea	620

Range of local/localized PVC transactions in May on cash, EXW/FD China basis (including 13% VAT in CNY term, all equivalent in USD excluding VAT)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton	Delivery Term
China	Acetylene-based	Offer Given	5,350-6,220	EXW	673-782
China	Acetylene-based	Sold	5,650-5,850	EXW	711-736
China	Ethylene-based	Offer Given	5,650-6,600	EXW	711-830
China	Ethylene-based	Sold	6,150	EXW	774
China	Ethylene-based	Offer Given	5,800-6,600	FD	730-830
China	Ethylene-based	Offer Received	5,900-6,500	FD	742-818
China	Ethylene-based	Sold	6,000-6,600	FD	755-830
Indonesia	Ethylene-based	Offer Given	5,970	EXW	751
Thailand	Ethylene-based	Offer Given	5,970	EXW	751

Range of import ethylene-based PVC offers in May on LC at sight

Origin	Transaction Type	Offers (USD/ton)	Deliver Term
India	Offer Given	630	CIF
Indonesia	Sold	620-630	CFR
Japan	Offer Given	680	CFR
Japan	Sold	620-690	CFR
South Korea	Offer Given	650-730	CIF
South Korea	Sold	670-710	CIF
South Korea	Sold	630	CFR
Taiwan	Offer Given	700	CFR
Thailand	Sold	705	CIF
USA	Offer Given	620	CIF
USA	Sold	675	CIF

Range of export PVC transactions in May on LC at sight, FOB China basis

Origin	Product	Transaction Type	Offers (USD/ton)
China	Acetylene-based	Offer Given	710-765

Range of local/localized PVC transactions in June on cash, EXW/FD China basis (including 13% VAT in CNY term, all equivalent in USD excluding VAT)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton	Delivery Term
China	Acetylene-based	Offer Given	5,800-6,600	EXW	730-830
China	Acetylene-based	Sell Idea	5,900-6,400	EXW	742-805
China	Acetylene-based	Sold	6,150-6,270	EXW	774-789
Brazil	Ethylene-based	Offer Given	6,200	EXW	780
China	Ethylene-based	Offer Given	6,400-7,050	EXW	805-887
China	Ethylene-based	Sold	6,900	EXW	868
China	Ethylene-based	Offer Given	6,900-7,000	FD	868-881
China	Ethylene-based	Sold	6,900-7,000	FD	868-881
Columbia	Ethylene-based	Offer Given	6,200	EXW	780
Mexico	Ethylene-based	Offer Given	6,200	EXW	780
Thailand	Ethylene-based	Offer Given	6,250	EXW	786

Range of import ethylene-based PVC offers in June on LC at sight

Origin	Transaction Type	Offers (USD/ton)	Deliver Term
India	Offer Given	700	CFR
Indonesia	Offer Given	780	CIF
Indonesia	Bid Received	770	CIF
Indonesia	Sold	780-800	CIF
Japan	Offer Given	780-810	CIF
Japan	Sell Idea	780-790	CIF
Japan	Sold	780	CIF
South Korea	Offer Given	780-800	CIF
South Korea	Sell Idea	750	CIF
Taiwan	Offer Given	790-820	CFR
Taiwan	Offer Given	790	CIF
Taiwan	Offer Received	790-800	CFR
Taiwan	Price List	820	CFR
USA	Sold	750	CIF

Range of export PVC transactions in June on LC at sight, FOB China basis

Origin	Product	Transaction Type	Offers (USD/ton)
China	Acetylene-based	Offer Given	765-830
China	Acetylene-based	Sell Idea	720-800

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

Published on July 7, 2020 10:53 AM (GMT+8)
Last Updated on September 7, 2020 1:02 PM (GMT+8)

QuarterlySSESSMENTS: Q2 2020 China PVC Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q2 2020 China PVC Prices

Author: SSESSMENTS

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