The futures found tentative footing, lifted by a rebound in crude oil and renewed optimism over US-China trade relations, even as pre-holiday caution and thin trading volumes kept a lid on the broader market. The two forces are pulling in opposite directions, and which one wins out is far from settled.
China's PVC market in August was defined by a confluence of forces converging from opposite directions: production discipline on the supply side, a demand-driven export surge concentrated almost entirely in one destination, and a domestic market that continues to insulate itself from import competition.
Chinese PET bottle resin export offers moved lower this week, falling back below the $1,200/ton threshold as softer crude oil benchmarks, hesitant overseas demand, and a stronger Chinese yuan checked a four-week pricing rally.