China’s PVC producers pre-sell January cargoes ahead of holidays

28 December 2011 05:36  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyvinyl chloride (PVC) producers, in an unusual move, have started to pre-sell their January cargoes this week to reduce inventories ahead of Lunar New Year holidays, industry sources said on Wednesday.

Majority of domestic PVC producers do not pre-sell cargoes every month but as holidays approach from 22 January to 28 January, PVC producers are reducing stocks because of weaker demand from the downstream factories like pipe and sheet makers, they added.

The PVC downstream factories, especially for small and medium sized ones, will close earlier than normal for the holiday break because of weak demand from the end users, a PVC trader in East China said.

Some small-sized downstream producers in East China plan to have longer holidays lasting about a month.

Besides, some PVC producers are finding it difficult to raise finances through bank loans in January, a market player said.

Domestic carbide-based PVC spot price today were assessed at  yuan (CNY) 6550-6650/tonne ($1035-1051/tonne) and the ethylene-based PVC spot price at  CNY 6750-7050/tonne in East and South regions, according to Chemease, an ICIS service in China.

($1 = CNY6.33) 

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By: Maggie Zhu

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