Asian PVC demand recovery in the first quarter is weak

Market participants predict that Asian PVC prices are likely to weaken further at the beginning of this year due to the seasonal recession. On December 24 last year, the price of PVC fell to US$970-1,000/tonne (CFR, China's main port). Before that, Asian PVC prices soared to US$990 to US$1030 per ton (CFR, China’s main port), reaching 8 months. The highest price to come.

Since the Chinese New Year holiday is approaching, the buyer hopes to postpone the purchase until after the long holiday. Therefore, the demand for PVC at the beginning of the year is not expected to rise. In addition, with the successful implementation of several new acetylene and vinyl PVC installations in China last year, the domestic PVC market will be oversupply this year. According to the ICIS data, China's PVC production capacity has increased by 20% from 18 million tons per year in 2009 to 23 million tons per year in 2010. In addition, due to the regulation of China's real estate policies, the demand for PVC will slow down this year.