09 October 2008 06:23 [Source: ICIS news]
SINGAPORE (ICIS news)--Asia polyvinyl chloride (PVC) prices have plunged to their lowest in 18 months on the back of falling feedstock costs and thinning demand in the face of global economic woes, market sources said on Thursday.
The price of ethylene-based PVC imports into China was assessed last week at $890-900/tonne CFR (cost and freight) China Main Port (CMP), an almost 32% drop from the record high reached in July, according to global chemical market intelligence ICIS pricing.
October was also the first month this year when prices of monthly cargoes into ?xml:namespace>
“All the gloomy financial news from the
The ongoing financial turmoil, rooted in the
“Ethylene prices were more than $1,700/tonne (CFR NE Asia) not too long ago but now it’s lower than $900/tonne. Buyers are thinking they might as well sit and wait for prices to drop further,” a PVC trader said.
Such bearish sentiment had been reinforced by an actual drop in demand for Asian PVC-based exports, producers noted.
“There are very few bright spots in the Asia PVC export market now. Besides the US and Europe, demand from the Middle East and
Governments and central banks worldwide have rolled out an array of rate cuts and rescue packages in a bid to stem the financial turmoil. PVC producers, in contrast, have said they could do little else besides lowering offer prices and cutting operating rates. PVC producers across
Prices of the comparatively cheaper carbide-based PVC in
A producer however noted that
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