Asian PVC dips below US$600, VCM follows suit

07-Nov-08

Slow moving PVC sales in China due to subdued demand from buyers coupled with overstocked domestic producers, has pulled down CFR China PVC prices to US$600/MT in Asia for November shipment. Despite lowered offers from domestic Chinese sellers, several Asian sellers are unwilling to lower offers any further. Deals were heard concluded at for CFR CMP delivery for prompt shipment, about 30-40 dollars lower. Persistent lackluster demand from the Asian buyers is compelling key producers in the region to offer material outside the continent, and has also led to a further price dip of hundred dollars in Asian VCM. VCM prices stand at their lowest level in about 6 years at US$400/MT CFR Asia. As the PVC demand situation seems unlikely to rectify itself in the near future, several VCM makers have reduced run rates.