China’s PVC market to enter holidays on a stable note
In China, PVC prices did not witness any major changes and trading activity was muted in the last week before the Chinese New Year holidays. Import PVC prices were unchanged from a week earlier to be quoted at $690-730/ton on a CFR China, cash equivalent basis. Inside China, sellers reported that they prefer to focus on the domestic market as export demand is quite slow. A source from an acetylene based PVC producer commented, “Demand from our export markets is stagnant while buying interest for domestic cargoes is not bad. Plus, local PVC prices have recently edged higher a bit on the back of firmer PVC futures on the Dalian Commodity Exchange. However, we maintained our offer levels from last week.” Export prices for acetylene based PVC were reported at $660-6680/ton FOB China, cash equivalent. The range was mostly unchanged from a week earlier. A source from a second acetylene based PVC producer stated, “We see regular demand from the local market nowadays. However, many players have already left their desks for the holidays while many others are reluctant to build up high stocks before the New Year holidays end. We hope to see better demand in late February.” Meanwhile, a trader based in Shanghai also commented, “Most buyers have already left the market for holidays. We feel that demand will start to improve after the New Year holidays. However, it may take some time for prices to witness a real rebound.”