PVC players in China evaluate government’s penalty decision on producers
Following the penalty news, PVC players in China evaluated the impacts of the government’s decision, saying that the overall sentiment in the local market has been negatively affected.
A source from an acetylene based PVC producer commented, “The market is slightly under pressure due to the news about the government’s penalty decision as well as volatile futures. However, supply issues remain in place and therefore, we think prices will hold firm in September.”
A trader opined, “We think that the Chinese government’s penalty decision might be the main reason behind the recent fluctuations in PVC futures. Buyers might retreat to the sidelines if futures remain weak in the near term.”
PVC futures on the Dalian Commodity Exchange were down by CNY405/ton ($62/ton) on a week over week basis on September 14.
A Shanghai-based trader also said, “A few PVC producers in China have been penalized by the government for attempting to monopolize the market, which is having a limited impact on trading activities as the PVC sentiment is still firm amidst limited supplies and strong costs.”
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