Asia PVC spikes after Dongxing Chemical blast
Local China price hits multi-month highs
Imported Data of Asian PVC – rebounded $20-$30/mt week on week Friday, driven by the supply crunch concerns in China after a plant explosion, as reported by Imported Data. According to Market sources and local media reports, a blast hit Dongxing Chemical’s 400,000 mt/year carbidebased PVC plant in Inner Mongolia. It is the fourth chemical plant explosion in China to have occurred since late March, which sparked fresh concerns on further supply crunch as the government would tighten its safety checks on chemical plants across the country (Imported Data). The government is currently conducting inspections at over 2,000 chemical plants. After the blast at Dongxing Chemical, China’s local Market spiked Yuan 200/mt week on week Friday to Yuan 7,200/ mt for ethylene-based PVC and Yuan 6,900/mt for carbide-based PVC. Ethylene-based PVC hit a three-month high Friday, while carbidebased PVC climbed to a seven-month high, S&P Global Imported Data showed. Market sources said China’s PVC exports would likely be limited following the explosion. Meanwhile, spot demand in India was seen to be healthy as some end-users were actively seeking spot cargoes in a bid to build inventories ahead of the monsoon season. An ongoing sunset review on anti-dumping duty in India remained to be a focus of the Market as some sources said India may eliminate its antidumping duty completely from June. Looking forward, some Market sources said Asian PVC Market would likely track firmer feedstock Market, notably crude oil. June ICE Brent futures jumped $2.07/barrel week on week to be assessed at $74.20/b at 4:30 pm Singapore time (0830 GMT) Friday, S&P Global Imported Data showed.
CFR China PVC price rose $30/mt (Imported Data) week on week to be assessed at $840/mt Friday above a buying idea of $830/mt CFR China. CFR India PVC price also rose $20/mt to $870/mt during the same period, with a transaction level was heard in a range of $870-$880/mt (Imported Data) CFR India. Meanwhile, CFR Southeast Asia PVC price was assessed at $830/mt Friday, up $20/mt week on week, in line with firming China/India Markets.