Post New Year holidays, domestic Chinese PVC producers have increased offer levels for both acetylene and ethylene based PVC in China, as per Chemorbis. These producers point to the better market sentiment, tight supply situation, their lack of inventory pressure and higher production costs have been the reasons cited for the increase amid severe weather conditions that caused by a heavy snowfall. Some players report that PVC deliveries were disrupted, mostly in North China, expected to remain in place for another 3-4 days, according to sources.
A domestic producer reported lifted their offer levels sharply by CNY200-300/ton (US$30-43/ton) after the New Year holiday. He believes that PVC prices will continue to move up over the near term. However, the producer, who operates his plant at 80% capacity, maintains export offer levels as he does not feel content about his export business. Another producer, who runs the plant at 60% capacity, elected to raise their offer levels by CNY150-250/ton (US$21-36/ton).