29 June 2010 10:41 [Source: ICIS news]
By Aaron Cheong
SINGAPORE (ICIS news)--Asia’s demand for polyvinyl chloride (PVC) may weaken with prices likely to be under continued pressure, as construction activity in China slows down in line with its government's efforts to cool down an overheating property sector, industry sources said on Tuesday.
Spot PVC prices had headed south over the past three months to $850-870/tonne (€689-705/tonne) CFR (cost and freight) CMP (China Main Port) on 25 June, off 15.0-15.5% from early March, ICIS data showed.PVC demand from ?xml:namespace>
Market players directly attributed the slump in imports demand to government measures introduced late last year to curb the sharp spike in property prices in
The measures included restrictions on pre-sales of property by developers, a halt on loans for purchases of third homes and an increase in the minimum mortgage rates and a tightening of financing requirement for second-home purchases.
“The domestic property market remained volatile as buyers and sellers [alike] are worried over new and potential government tightening measures,” said a market source.
Demand from home buyers may continue to soften over the rest of the year, industry sources said.
Property transactions in
Developers, meanwhile, had continued to delay home sales and project launches.
“The PVC demand growth for this year would, at the very least, be expected to be on par with GDP growth for 2010,” he added.
($1 = €0.81)
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