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Acetylene based PVC hits 5 year high in China

by ChemOrbis Editorial Team -
  • 09/11/2016 (11:55)
According to data from ChemOrbis Price Index, acetylene based PVC prices in China have hit their highest levels since October 2011 mainly due to the ongoing supply tightness in the country as well as surging PVC futures on the Dalian Commodity Exchange.

Last week, some players expressed their expectations of seeing downward corrections on prices since prices ran up too quickly. However, this week’s price range contradicted these expectations. Chinese acetylene based PVC producers reported higher prices this week within the range of CNY7300-8300/ton ($923-1049/ton without VAT), up by CNY300-470/ton ($44-69/ton) from last week.

A local trader receiving offers on the high end stated, “End users had shown resistance to the former high levels, but prices continued to follow a firm note this week due to tight supply and strong VCM costs.”

Local prices are expected to maintain the current trend in the near term with the support of the supply tightness. Meanwhile, import prices in the Chinese PVC market are also on a firm note. After a $40/ton hike implemented by a Taiwanese major last month, players expect to see higher levels from Asian producers for December offers.
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