Acetylene based PVC prices less competitive in SEA
Spot ethylene prices in Asia are currently hovering around their lowest levels since September 2013 in line with the softening trend in global energy markets. Spot ethylene dropped $10/ton week over week to be quoted at around $1325/ton CFR Northeast Asia.
A Malaysian trader who is offering acetylene based PVC at $935-940/ton CIF SEA, cash, stated, “PVC demand remains stagnant as even acetylene based PVC buyers prefer to stick to the sidelines with the expectation of seeing lower prices for ethylene based materials due to the current bearish trend in the ethylene market.” A Shanghai-based distributor commented, “We think that acetylene based PVC sellers will need to revise their offers downward if demand continues to be sluggish. PVC buyers are currently postponing their purchases as they expect to see decreases in line with softer ethylene feedstock costs.”
A Malaysian converter reported that they were offered Chinese acetylene based PVC cargoes at $920-930/ton CIF, cash and ethylene based cargoes at $940-950/ton with the same terms. The buyer said, “Prices are likely to follow a softer path in the near term as market sentiment remains slow.”
Meanwhile, a source from a Chinese producer also stated that they are giving ethylene based PVC offers at $930-950/ton CIF SEA, cash. The source commented, “Currently, acetylene based and ethylene based PVC prices are trading almost at par.”
In Southeast Asia, acetylene based PVC prices are currently standing at $910-935/ton on a CIF SEA, cash equivalent basis while ethylene based PVC k67 prices are reported in the range of $925-980/ton with the same terms.
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