Chinese players: Local PVC prices continue to gallop higher

After international market received fresh August delivery offers with $40/ton higher than last month, most domestic PVC makers in China also lifted their prices on the back of tightened supply and better demand from overseas customers.

In fact, domestic prices have added CNY50-100/ton ($7-15/ton) compared to last week. At the moment, local material offered based on EXW China, cash term stand at CNY5400-5650/ton ($690-723/ton without VAT) for carbide based PVC and at CNY5850-5950/ton ($749-761/ton without VAT) for ethylene based parcels.

An ethylene based PVC producer in Ningbo said, “Supply for this grade is shorter than others given several major plants have been operating at lower rate for an extended period of time. For this we lifted our prices by CNY100/ton ($15/ton) for domestic buyers and $40/ton for overseas customers. Sales are satisfied and customers continue to send in purchase inquiries even at the latest price levels.”

Another carbide-based producer increased their prices added, “Purchasing activities remain below our expectation due to the raining season; however, we are not planning to cut offers considering the bullish sentiment in the overseas ground. Our export business is good, and this would keep local ground firm in the near term.”