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Asian PVC market awaits June offers13 May 2022 / ChemCourier. PVC Market Weekly / prices & market situation

Asia

Delivery terms

Unit

13 May 2022

6 May 2022

Change

15 Apr 2022

Change

Jun 2022*

CFR Southeast Asia

$ / t

1410–1450

1410–1450

1450–1500

-45

ê

30

CFR China

$ / t

1300–1350

1310–1350

-5

1330–1370

-25

ê

50

FOB China (carbide)

$ / t

1200–1260

1230–1300

-35

1310–1350

-100

ê

50

DAP Dostyk (SG-5)

$ / t

1180–1200

1220–1240

-40

1230–1260

-55

CFR India

$ / t

1480–1580

1480–1580

1550–1650

-70

ê

40

*Forecast

 

 

 

 

 

Chem-Courier data

The Asian PVC market is slow as market players are waiting for June offers. June PVC prices are likely to come out next week. Suppliers may take $50—100/t off the May levels. The new COVID-19 outbreak that began in the city of Shanghai on 1 March 2022 has put pressure on the entire Asian market. Other suppliers have to go into competition with the lower-priced Chinese polymer.

The Chinese PVC market has been unchanged this week. The COVID-19 pandemic has taken a heavy toll on the major PVC-consuming industries such as the automotive, the electrical and electronic and the building and construction ones. Therefore, some local converters have reduced operating rates. The persisting marine traffic jam at the ports of Shanghai and Ningbo continues and limited truck access to them have aggravated the situation further. Foreign suppliers have started offering the polymer at lower prices to attract more buyers. PVC has been available at $1,300—1,350/t CFR China this week. Chinese suppliers are focusing on sales abroad and quoting the lowest prices due to weak demand in the country. Carbide- and ethylene-based PVC has been on offer at $1,200—1,260/t FOB China and $1,230—1,280/t FOB China, respectively, this week, down $35/t from last one. The most actively traded PVC futures for July delivery have depreciated by CNY 106/t ($16/t) week on week to CNY 8,795/t ($1,319/t) EXW on China’s Dalian Commodity Exchange this Friday.

The Indian PVC market players have been waiting for June offers this week. ‘We anticipate the June-offered polymer to be lower-priced and will buy then,’ an Indian trader has said. Chinese suppliers are decreasing PVC quotes weekly because of worsening delivery issues. The Chinese polymer has been up for sale at $1,480/t CIF India in the country this week. ‘There are lower offers from China, but we do not accept them because of delivery concerns,’ an Indian converter has said.

Although PVC imports into Southeast Asia from China have got more challenging because of an acute container shortage and quarantine, SEA customers are slow to replenish stocks and buying only as needed. The polymer has cost $1,410—1,450/t CFR SEA this week.

Asian market players will start purchasing PVC once suppliers announce June offers. Nevertheless, the COVID-19 epidemic in China will continue to stifle consumer activity. Uncertain outlook for demand is likely to either keep PVC prices stable or push them $10—30/t down. Indian and Southeast Asian customers will buy the polymer ad hoc and the resin may either hold its value or lose $20—40/t on low business activity.

 

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