China’s local PVC market retreats further
September PVC futures on the Dalian Commodity Exchange closed CNY85/ton ($12/ton) lower at CNY5600/ton ($695/ton without VAT) on Monday, April 24. When compared to late March, PVC futures are down by CNY515/ton ($75/ton).
An ethylene based PVC producer commented, “Demand remains weak in China as buyers prefer to stay on the sidelines in anticipation of seeing additional drops. We lowered our offers by CNY100/ton ($15/ton) this week due to stock pressure. We think prices are likely to lose further ground until inventory levels become lower.”
A compounder noted, “Local prices declined further today in line with softer futures prices. Sellers are willing to give lower offers as they are holding high inventories. For this reason, prices are expected to move lower in the upcoming days.”
Local PVC offers are currently reported at CNY5600-5650/ton ($695-702/ton without VAT) ex-warehouse China, cash including VAT basis for acetylene based PVC while ethylene based PVC prices are standing at CNY6400/ton ($795/ton without VAT) with the same terms.
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