Domestic acetylene based PVC offers retreat in China

22-Jan-10

In China, acetylene based PVC sellers elected to cut their offers, pointing to the buyers’ stiff resistance and their wish to speed up their sales, since the beginning of this week, as per Chemorbis. Sellers are under sales pressure due the approaching Chinese New Year holiday and slow winter season. Considering these circumstances, most producers issued CNY50-100/ton (US$7-14/ton) decreases on their offer levels while a buyer claimed to receive CNY150-200/ton (US$21-29/ton) lower offer levels as of today. Now, the overall acetylene based PVC offers represent CNY100/ton (US$14/ton) decreases at both ends of the range with respect to last week and stand at CNY7300-7550/ton on FD China, cash including VAT basis. The range corresponds to US$913-944/ton without VAT including delivery. Meanwhile, ethylene based PVC offers track a stable trend for the time being at CNY7600-8000/ton (US$950-1001/ton without VAT including delivery) with the same terms on week over week basis. Judging by the current situation, additional decreases are likely to occur in the domestic market, especially for the ethylene based PVC as the sentiment is affected by the developments in the acetylene based PVC market. However, in both markets, producers insist that the size of the discounts will be limited as they need to guard their margins amidst higher production costs. In Asia, February VCM contracts are nominated with US$80-90/ton increases.