Acetylene based PVC prices move lower in Asian markets
Players attributed the recent decreases to the fact that acetylene based PVC producers are facing stiff competition from ethylene based PVC amidst persistently inadequate demand.
In China, a source from an acetylene based PVC producer reported that they reduced their domestic prices by CNY100/ton ($16/ton) due to disappointing demand. “We are only able to conclude deals with our regular customers nowadays. The economic situation is not promising and this is hindering buying appetite. We think that prices may hover around their current levels in the near term,” the source commented. A source from another Chinese producer stated that local prices for acetylene based PVC cargoes decreased by around CNY50/ton ($8/ton) after the end of the holidays. He said, “Players are avoiding building high stocks as the outlook remains vague.”
A source from a third producer, whose export acetylene based PVC offers stand at $735/ton FOB China, cash, stated, “Despite lower prices for acetylene based PVC, our overseas customers are mostly preferring ethylene based cargoes nowadays as competitive levels are obtainable for this product.”
In India, a compounder reported that he received lower offers for acetylene based PVC cargoes at $735/ton CIF, cash. According to him, this level indicates decreases of $30-40/ton when compared to the most recent offers they received for this product. “Demand has slowed down in the face of upcoming Diwali holidays. Supplies are sufficient. We expect to see a soft trend until December,” the compounder stated.
Meanwhile, a Chinese acetylene based PVC producer issued decreases on their export prices to Southeast Asia, bringing their offers to $740/ton on a CIF SEA, cash basis. “Despite our recent reduction, we are still facing resistance from buyers. We heard that it is possible to obtain quite competitive prices for ethylene based PVC from Thailand and Indonesia. We may consider lowering our offers by another $10/ton next week if demand remains sluggish,” a producer source reported.
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