Nov PVC offers announced lower in China
Oct. 19, 2018
In China, a major Taiwanese producer announced its November PVC offers with $30/ton decreases from October at $840/ton CFR China, cash. The softer pricing was attributed to disappointing post-monsoon demand in India, softer ethylene prices along with falling local currencies across Asia.
In the import market, the overall range for PVC k67 prices was $20-30/ton lower from last week at $830-840/ton CIF, cash. Following the major producer’s decision to cut its new offers, the weekly average of China’s import PVC market has reached their lowest levels not seen since early August 2016, according to ChemOrbis Price Index.
In the local market, prices for acetylene-based and ethylene-based PVC were mostly stable for the second consecutive week. PVC futures on the Dalian Commodity Exchange witnessed a weekly decrease of CNY335/ton ($49) as of October 17. Despite lower futures prices, suppliers mostly elected to approach the local PVC market with stable offers given tight supplies and limited replenishment activities. A source from an acetylene-based PVC producer commented, “Our offers are unchanged this week. Local supplies are tight amid ongoing maintenance shutdowns while demand is not bad.”
The softening in futures prices may reflect on the local PVC market in the days ahead. However, availability issues as well as stable demand may prevent prices falling sharply or even help prices to hover around their current levels, some players argue. As for imports, after the major Taiwanese producer’s lower-than-expected November offers weighed on the Asian PVC market, players are waiting to see if a similar pricing policy will be adopted by other suppliers.