Chinese carbide-based PVC maker lifted local and export prices

A major carbide-based PVC producer in China reportedly increased their offers for both local and export cargoes today, marking the second price increment this week on healthy domestic demand and higher costs. 

Latest price list shows CNY200/ton ($30/ton) hike compared to earlier this week for domestic market, reaching CNY5900-6000/ton ($754-765/ton without VAT) EXW China, cash term. Source from the producer commented, “Our plant is currently operating at 70% capacity while most of our customers are speeding up their purchases before the G20 road-ban take place. We think local demand would remain resilient in the near term, as August-September is the traditional peak season. Besides, reduced availability in the international market might also support firmer offers levels from major producers.”

The maker has also up adjusted export offers by $20/ton to reach $780/ton FOB China, LC AS term. With this price hike, the gap between ethylene based and carbide based PVC is narrowing, especially in Southeast Asia region, arousing market concern over the acceptance levels amid slow demand season during the monsoon.