China's Feb PVC exports hit 4-year high amid bullish demand in India

Singapore — China's polyvinyl chloride exports surged almost five times year on year to a four-year high of 144,624 mt in February, as Chinese producers accelerated exports to India due to bullish demand, the latest statistics data showed.

February PVC exports to India jumped 52.9% from a month earlier to 27,225 mt, the latest data showed.

According to S&P Global Platts data, CFR India PVC average price in February rose 19.6% from a month earlier to a fresh record-high of $1,425/mt, fueled by bullish demand.

In contrast, China's PVC imports in February sank 58.8% from a month earlier to a decade-low of 19,629 mt, according to the latest statistics.

Market sources said China's PVC exports would likely increase for the next few months amid a global supply crunch. In the middle of February, petrochemical producers were forced to shut down their plants in the US amid freezing weather, which prompted a supply shortfall from the US to key regions, such as Latin America and Africa.

Reflecting global tight supplies, a key PVC producer in Asia raised its monthly PVC price by $300/mt from a month earlier to $1,640/mt CFR India and $1,500/mt CFR China for April delivery business, according to trading sources.

Market sources said monthly prices would likely continue rising in the coming months as PVC production in the US remained disrupted.

Meanwhile, the latest offer basis FOB China was heard at $1,450/mt for April loading. Market sources said it was more profitable for Chinese PVC producers to export, citing local China value.

Local China PVC price has been hovering at around Yuan 9,500-9,700/mt, which can be calculated at around $1,300/mt on an import parity basis.

"Container freight rates are normalizing after a sharp spike seen since late last year. It also opened up more opportunity for Chinese PVC producers to export," a trader said.