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Acetylene and ethylene-based PVC move in opposite directions in China

by ChemOrbis Editorial Team -
  • 12/12/2018 (09:16)
In China, acetylene and ethylene-based PVC prices have tracked opposite paths so far this week after moving in the same direction for around ten months.

Ethylene-based PVC prices up for 3rd week

The firming trend in ethylene-based PVC prices, which kicked off in late November, has been extended into this week mainly with support from tight availability. The 90-day truce on the China-US trade conflict also lent support to the market over the past week.

A source from an ethylene-based PVC producer reported increasing their offers by CNY100 ($15/ton) from their latest levels, citing limited supplies.

A trader based in Hangzhou opined “Ethylene-based PVC offers moved further up this week on limited availability while acetylene-based PVC offers witnessed slight decreases due to the weakness in the futures market.”

Acetylene-based PVC prices turn down

On the other hand, acetylene-based PVC prices have yielded to the weakness of futures prices and failed to sustain the consecutive gains of the last two weeks.

PVC futures on the Dalian Commodity Exchange slumped CNY340/ton ($49/ton) on the week as of December 11.A source from an acetylene-based PVC producer commented, “Acetylene-based PVC prices are under pressure from weaker futures this week. Plus, the overall demand for PVC is weak amid the winter season.”

Gap between ethylene and acetylene based PVC widens

Following the recent movements, ethylene based PVC prices on an ex-warehouse China basis are currently trading with a premium of around $112/ton over acetylene based PVC, data obtained from ChemOrbis Price Index show.

The last time such a wide gap occurred between two products was mid-January 2017.

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