China’s domestic PVC market remains soft for fifth straight week
Restrictions on electricity usage and environmental inspections in some parts of the country also hindered demand in December. Local supplies started to improve while volatile PVC futures kept purchasing amounts limited.
Softening trend stretches into January
“Spot PVC offers in the domestic market have witnessed fresh drops this week amid falling futures. Demand from converters is lukewarm. Downstream players are operating at reduced rates,” a trader in Hangzhou reported to ChemOrbis.
May PVC futures on the Dalian Commodity Exchange settled CNY155/ton ($24/ton) lower at CNY6950/ton ($950/ton without VAT) on Monday, January 11.
According to ChemOrbis Price Index, the weekly average of ethylene-based PVC K67 prices on ex-warehouse China basis has lost 8.2% in five weeks while acetylene-based PVC prices have recorded a larger decrease of 15% over the same period.
Domestic offers are currently reported at CNY8000-8200/ton ($1093-1122/ton without VAT) for ethylene-based K67 and at CNY7150-7400/ton ($979-1013/ton without VAT) for acetylene-based K67, all on ex-warehouse China, cash including VAT basis.
Pre-holiday replenishment likely to be limited
Although demand has slightly picked up recently after the controls over environmental pollution and electricity use partially ended last week, players mostly expect the pre-holiday replenishment activities to be limited this year.
“Demand should improve to some extent ahead of the Chinese New Year holidays as buyers traditionally build some inventory before leaving their desks. However, we are not expecting to see strong demand this year amid the COVID-19 situation coupled with transportation issues,” a seller opined.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PP, PE already back to 2020 lows in China; prices poised for further drops
- Local PE prices remain bearish, nearing multi-year lows across SE Asia
- European PP, PE buyers sideline ahead of further drops in June
- China’s April PE imports fall to around 1 million tons, lowest since 2018
- Vietnam’s polymer markets buckle under an influx of Chinese cargoes
- Divergence grows between Egypt’s import and local PP, PE markets
- PP markets in China, Vietnam hit 3-year lows, readying to test new lows
- African PE, PP markets extend slide into May
- Asian PS, ABS markets at 2½-3-year lows amid Chinese oversupply
- India’s Q1 PVC imports hit record-high; did buyers rush to stock up before expected restrictions?