Local PVC prices in China extended firming trend

Chinese players reported on the first trading day of the week receiving fresh offers for PVC from local producers at CNY100-200/ton ($15-30/ton) higher than last week for both ethylene and carbide based cargoes. Market participants attributed higher prices to strong support from firming futures market and a pick up in domestic demand.  

An ethylene based PVC producer lifted prices to CNY6300/ton including VAT ($807/ton without VAT), EXW China, cash term said, “We managed to conclude satisfactory number of deal even after the price hike. We expect to see the current state of demand to sustain throughout quarter 3, hence market might still have more rooms for further increment.” 

Another carbide based PVC maker increased their offers by CNY100/ton ($15/ton) added, “We are not having inventories pressure as we have been operating at lower rate for sometime due to strict environmental control. Our feedstocks therefore become more expensive and we need to transfer higher costs to our prices. Market has a strong support from stable demand in both international and domestic ground, hence we hold positive outlook in the coming months.”

It is expected that trading activities would continue to pick up in the near term, as August-September is the traditional high demand season. Together with firm futures market, players are hoping for a sustainable improved demand condition in the coming months.   

Domestic ethylene based PVC is at the level of CNY6100-6300/ton with VAT ($782-807/ton without VAT) and carbide-based PVC at CNY5500-5800/ton with VAT ($705-743/ton without VAT), all on EXW China, cash basis.