China’s local PVC market remains firm ahead of Sept pricing
Aug. 20, 2018
In China, the local PVC market continued to follow a mostly stable to firmer trend over the week mainly with support from strong futures prices. The import PVC market, on the other hand, remained stable ahead of a major Taiwanese producer’s awaited September pricing, which is expected to be announced next week.
Acetylene based PVC prices were mostly unchanged over the past week while ethylene based PVC prices witnessed further increases. Between August 13-15, PVC futures on the Dalian Commodity Exchange witnessed a total increase of CNY30/ton ($5/ton). Not only strong futures prices, but also reduced supplies amidst environmental inspections and shutdowns as well as higher carbide costs and spot ethylene prices also contributed to this week’s trend. A trader commented, “We expect to see an improvement in replenishment activities in the remaining part of August. Plus, strong futures prices and firmer coal prices are other supportive factors. We think these factors will drive local PVC prices higher in the near term.”
In the import market, the overall import PVC k67 prices for Asian origins reported stable at $960-970/ton CIF, cash. The market was quiet with limited activity as players were closely watching for new September announcement from the major Taiwanese producer. Expectations are mostly calling for rollovers to slight increases considering the firming in China’s local PVC market and the major’s limited supplies.
Local PVC prices are expected to maintain their stable to firmer trend in the days ahead on the back of a possible recovery in demand in line with the peak season in the September-October period; high costs as well as reduced supplies support these expectations. As for imports, the market will be shaped after the September pricing.