Domestic PVC prices are in free fall despite the shortage of goods

PVC futures and spot were the commodities that recorded the biggest declines during this period. Although PVC supply remains tight in China, the notable drop in Dalian futures prices has impacted prices.

January PVC futures prices on the Dalian Commodity Exchange have been trading lower since October 20 and are down CNY 2085/ton ($327/ton) from the previous week, as of October 26.

A third trader said: “PVC futures have been in free fall since last week and dragged down local PVC prices. Most PVC manufacturers have revised down their quotes while some have decided to stop their quotes. The only positive thing is still the high coal price and the shortage situation. However, we think the near-term trend will depend on futures and coal price movements.”

Domestic PVC prices in China slipped from record highs last week. Since then, the price of PVC made from ethylene has decreased by a total of CNY 1200-2200/ton ($188-345/ton), to CNY 12,000-14,000/ton ($1661-1938/ton excluding VAT) in China shipping method, cash including VAT. Meanwhile, the price of PVC made from acetylene has decreased by 2500-2600 CNY/ton ($392-407/ton), to CNY 11,200-12,000/ton ($1551-1661/ton excluding VAT) in the same manner. .