Gap between acetylene and ethylene PVC widens in China
Ethylene-based PVC prices, meanwhile, remained mostly stable during the same period. Currently, ethylene-based PVC is carrying a premium of around $100/ton over acetylene-based PVC, according to the Prize Wizard.
“PVC prices are decreasing in the Chinese local market due to softening future prices. In addition, downstream buyers had previously bought a lot when prices were on an upward trend. Hence, they are not interested to buy now and are showing resistance. Traders are currently focusing on clearing their inventories. Even though suppliers’ operating rates are still high, we are not positive about the market outlook as the market has entered off-season,” said a local producer source.
“Acetylene-based PVC producers and traders are clearing their inventories nowadays and demand is obviously slower in the North. The market will be on a downward momentum in December as buyers will not rush to buy. There are fewer done deals,” commented a source from another local producer.
Last week, a plastic end manufacturer also reported that supply in China is still tight; however, local PVC prices have witnessed some decreases recently due to weaker futures prices.
A different local producer also reported that demand is not good in the local market especially in the Northern part of China due to winter season, adding that players are reducing their operating rates and they expect to see some correction on prices in the upcoming period.
Market players’ expectations mostly center on a bearish note for local PVC prices in China due to weakening demand in line with off-season. Some also argued that increased amounts of PVC cargoes from different origins have reportedly entered China recently, which may ease supply levels a bit in country in the upcoming period.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- March PE prices take split paths in Africa, Mid-East
- Asian PS markets touch 4-month high amid volatile styrene
- Turkey’s PP market attracts deep-sea origins at 4-month high
- European ABS rebounds from 3-year low
- Firming persists in Vietnam’s PE market, shrugging off ethylene
- European styrene continues to climb up, Asia remains cautiously firm
- PP market up from a year-low in Europe; yet hikes beyond C3 see resistance
- Asian ethylene slumps on supply glut
- Ebbing demand in India weighs on April PVC outlook
- Asian PET markets trend higher on firmer costs, nearing high season