China PVC Dec offers drop $10-20/tonne

18 November 2008 03:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Offers for polyvinyl chloride (PVC) cargoes into China for December delivery have fallen $10-20/tonne from November settlement levels but still represented a rebound from the values seen in recent weeks, industry sources said on Tuesday.

 

A northeast Asian producer was heard offering PVC at $580/tonne CFR (cost and freight) China Main Port for December delivery.

 

A surge in China’s domestic demand last week halted the slide in PVC values towards the $500/tonne CFR CMP mark.

 

Prices were last Friday assessed at $520-580/tonne CFR CMP, with deals heard concluded at low-$500s/tonne CFR CMP on Monday and Tuesday, according to global chemical market intelligence ICIS pricing.

 

Most sellers withdrew or raised their offers by the end of the week following the rise in demand, traders and producers said.

 

The market was however divided over whether the price increase could be the start of a sustained rebound in Asia PVC prices.

 

The drastic cuts in chlor-alkali operating rates across the region would bring down PVC production and could exert strong upward pressure on prices, said one producer, but others believed that persistent economic woes could derail the price recovery.

 

Lynn Du from CBI contributed to this article

 

For more on PVC visit ICIS chemical intelligence

To discuss issues facing the chemical industry go to ICIS connect

 

By: Ng Hun Wei
+65 6780 4359

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