China PVC Demand Began To Vapid, Price Trend Persists As The Absence Of Inventory Pressure Lends A Hand
As SSESSMENTS.COM noted, China PVC demand began to vapid, yet, the local price trend persists as the absence of inventory pressure lends a hand. This week, offers for acetylene-based PVC offers from several local producers recorded stable to firmer by CNY200/ton ($28/ton) on a weekly comparison. Meanwhile, local offers for ethylene-based PVC cargoes were stable as compared to the same period. At the moment, the absence of inventory pressure has provided support for the local price trend to sustain despite futures market prices tumbled. To the export market, most producers have yet to release their offers so far, but the prices should be stable from last week, a producer commented. In the import market, July shipment offers from the leading Taiwanese PVC producer surfaced in the China market with an increase of $90/ton from last month. Additionally, one of the local producers hopes that the hefty increment made by the leading Taiwanese PVC producer will make China’s export prices to be well-accepted.
Demand-wise, SSESSMENTS.COM was told that buying sentiment in the domestic market began to weaken. This week, some converters only procure on an as-needed basis as the sales for end-products remain slow, while some others are not keen on buying as they have replenished their stocks beforehand. Besides, the futures market prices have shown some decreases and buyers were showing stiff resistance toward high prices. From exports, a producer stated that the demand has slightly improved. On the supply front, as of June 8, inventory level of acetylene-based PVC in coastal China recorded at 311,900 tons, digested by 21,000 tons. A reduction of 13,000 tons recorded in East China, stood at 236,900 tons. While in South China, the inventory stood at 75,000 tons, decreased by 8,000 tons. All compared to last week's levels. On the plant news, maintenance shutdown at China’s Xinjiang Zhongtai Chemical Co Ltd’s 1,100,000 tons/year PVC plant was reported to be postponed to August and will be shut for 7-15 days.
Looking ahead, market players voiced out different opinions regarding pricing outlook to SSESSMENTS.COM. Some predict that local PVC prices will remain firm on the back of the absence of inventory pressure. But some others opined that there is a chance for local PVC prices to drop in the near future following the weakening demand.
Local/localized PVC offers on cash, EXW/FD China basis (including 13% in CNY term and excluding VAT in USD term)
Description: *Offers on FD basisImport ethylene-based PVC offers on LC at sight, CFR China Main Port basis
Export acetylene-based PVC offers on LC at sight, FOB China basis
Tags: Asia Pacific,China,English,NEA,PVC,Weekly
Published on June 9, 2020 12:08 PM (GMT+8)
