Domestic PVC offers rise amid slow moving activity in China

15-Jan-10

In China, domestic PVC k67-68 offers have increased for acetylene and ethylene based PVC vs last week, as overall market activities slowed today, especially for acetylene based PVC, as per Chemorbis. This week, distributors ethylene based PVC offers indicate a CNY250/ton (US$36/ton) increase at the low end, while they remain stable at the high end at CNY7600-8000/ton on FD China, cash including VAT basis, US$951-1001/ton without VAT incl delivery. Offers for acetylene based PVC rose by CNY350/ton (US$51/ton) at the low end, and slipped by CNY50/ton (US$7/ton) at the high end of the range to CNY7400-7650/ton with the same terms, US$926-957 without VAT including delivery. Demand is not deemed to be good at a time when sales pressures are beginning to mount. Hence the distributor is willing to marginally reduce offers in a bid to promote sales. However, they are unwilling to give larger discounts due to the high costs and their low stock levels. According to him, locally held PVC prices will maintain a stable trend at their current levels over the near term. Few sellers reported electing to offer discounts on their acetylene based offers of CNY50-100/ton (US$7-14/ton) within the overall range.