Domestic PVC prices in China restrain CFR Asia prices to US$700

03-Nov-08

Domestic PVC prices in China continue to fall in line with deteriorating market sentiments. Also, falling ethylene based PVC prices are exerting constant pressure on prices of carbide-based PVC in China. Export offers from the Mainland witnessed an almost fifty dollar dip to US$650/MT FOB CMP, in line with weakening domestic offers and pessimistic demand. Unenthusiastic buying from China has kept November shipment CFR offers at US$700/MT. Key processors in China supply finished products mainly to export markets. As global economic slowdown gathers pace, demand (particularly from USA) continues to slacken, affecting buying in China. A 200 dollar drop has been witnessed in one month alone, and prices seem poised to head south, as bids from Chinese buyers have been down revised to levels below US$650/MT CFR china.