Local PVC prices firm up in China
A source from a second local acetylene based PVC producer added, “Coal costs have been increasing since the end of the Chinese New Year holidays, which has pushed acetylene based PVC prices up. Most producers are still running their plants with negative margins due to higher costs on one side and persistently sluggish demand on the other. However, we are still expecting a firm trend for the near term as we believe that the local market will continue to find support from upstream costs.”
A trader also stated, “Local acetylene based PVC prices remain high as producers are standing firm on their offers in line with higher costs. Demand remains disappointing as buyers are not in a rush to replenish thanks to their sufficient stocks. Meanwhile, future prices have posted some increases recently, which might also help support high PVC prices over the short term. Still, we are not feeling confident regarding the near term market outlook.”
May PVC futures prices on the Dalian Commodity Exchange are up CNY220/ton ($35/ton) week over week as of the close of trading on Wednesday, March 25.
In China, acetylene based PVC prices are currently reported at CNY5300-5500/ton ex-warehouse China, cash including VAT ($741-769/ton without VAT), with the high end indicating an increase of CNY100/ton ($16/ton) week over week.
In line with higher prices for acetylene based PVC, conventional PVC prices also witnessed weekly increases of CNY100/ton ($16/ton) to be reported at CNY6000-6100/ton ($839-853/ton without VAT) with the same terms.
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