Chinese ethylene based PVC producer cuts export allocation
The source commented, “PVC prices in China have been declining in line with the approaching Chinese New Year holiday as well as softening futures prices. We think that PVC prices will continue to retreat in January and rebound in February as demand will start to improve after the holiday. We are giving discounts based on the purchasing quantity. This month, our total export allocation is 10,000 tons; 5,000 tons less than our usual allocation as we want to sell more to the domestic market rather than the export market given higher prices in the domestic market. Despite weak demand and lower prices, we are not planning to reduce our operating rate as we are building inventory for the post-holiday period.”
The producer’s current offers for PVC K67 are quoted at $880/ton FOB China basis.
In addition, air pollution in Beijing negatively affects the nearby Tianjin port and transportation as Tianjin port was ordered to be closed for five days last week. This also caused export allocations to reduce on Chinese producers’ side.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- European PE markets set for 2nd bullish month on rising costs
- Turkey’s PP and PE markets propelled to a firm start to H2 despite vulnerable conditions
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Uptrend in China’s import PP market continues but cautious mood returns
- Hikes in Asia July PVC offers baffle some buyers, further rally under discussion