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Trader: acetylene based PVC prices move lower in China

by ChemOrbis Editorial Team -
  • 07/01/2015 (11:54)
A trader in China reported that acetylene based PVC prices have softened in spite of sellers’ efforts to keep the market firm. Acetylene based PVC producers are facing stiff competition from ethylene based PVC producers, who have gained a cost advantage in line with steep decreases in spot ethylene prices.

The trader stated that they were able to conclude some deals for acetylene based PVC at CNY5630/ton ex-warehouse China, cash including VAT ($784/ton without VAT) after giving offers at CNY5700-5800/ton with the same terms ($793-807/ton without VAT).

He commented, “Acetylene based PVC cargoes are now facing a stronger pressure from ethylene based cargoes, which seem to have further room to decrease on the back of persistently declining upstream costs. Hence, we expect that acetylene based prices will follow a softer trend in the coming weeks in order to remain competitive with ethylene based PVC.” He added that demand normally shows some slight improvement ahead of the Chinese New Year holidays while adding they are not feeling optimistic about the demand outlook this year.

According to data from ChemOrbis Price Index, acetylene based PVC prices in the local market have been carrying a premium of around $25-30/ton over ethylene based PVC for three weeks, with players attributing this significant change in market dynamics to major drops in spot ethylene prices, which have reversed the cost situation in favor of ethylene based producers. Acetylene based PVC had last traded with a premium to ethylene based PVC in September of 2008.

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