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Local PVC supply tightens in China

by ChemOrbis Editorial Team - content@chemorbis.com
  • 03/08/2016 (17:29)
Players in China reported a slight tightness in local PVC supply due to higher exports to India and lower operating rates stemming from environmental inspections, which started this week.

A Chinese trader commented, “PVC production in the northwest region is currently affected by inspections for evaluating the environmental pollution. Supply for PVC is tight, particularly for carbide based PVC.”

A second trader in Beijing stated, “We are positive about the near term outlook as domestic PVC supply is a bit tight, which we attribute to the higher exports to India and environmental inspections causing producers to reduce their operating rates. PVC prices are not likely to fall down in the near term.”

A Chinese producer reported limited activity in the market for now as they have already sold out. “Supply for ethylene based PVC and carbide based PVC tightened due to lower production rates during the summer period. We heard that a Taiwanese major will announce its new prices in the middle of the month with a $20/ton increase and we believe that buyers will be able to accept these levels,” commented the producer.

Another producer, who has shut their PVC plant for maintenance at the end of last month for 10 days, claimed, “Environmental inspections are taking place every year, but this year it has an effect on the market. However, we believe these effects on supply will only be temporary.”

Local PVC prices are currently reported at CNY6000/ton ($770/ton) for k-67, k-70 and k-58 on ex-warehouse China, cash not inc VAT basis. As for acetylene based PVC, prices are reported at CNY5700/ton ($731/ton) for k-58 and k-70 and at CNY5500-5800/ton ($705-744/ton) for k-67 with the same terms.
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