28 June 2012 09:31 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Guangxi Liuhua Chlor-alkali on 28 June restarted its 100,000 tonne/year calcium carbide-based polyvinyl chloride (PVC) plant at Liuzhou, Guangxi province, after shutting it on 20 January, a company source said on Thursday.
The producer shut its plant because it was experiencing high cost pressure and demand was weak, added the source.
“We are operating the plant at as low as 20-30% capacity [after restarting it]. Testing and debugging is needed after such a long shutdown period,” the source said in Mandarin.
The producer has not made any official PVC offers yet as its inventory is still low, according to the source.
PVC availability in south China is ample because of the continuous supply of cargoes from producers in northwest China, while demand is weak, said a local trader.
The plant restart will cause supply to increase and weigh down on spot prices, added the trader.
As a result, participants’ short-term outlook for the PVC market is pessimistic and they expect prices to drop further.
Spot carbide-based PVC prices in south China were at yuan (CNY) 6,400-6,430/tonne ($1,006-1,011/tonne) EXW (ex-works) on 28 June, down by CNY100-120/tonne compared with prices on 22 June, according to data from Chemease, an ICIS service in China.
($1 = CNY6.36)
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