The domestic market performed well and PVC prices rose

On Tuesday, Taiwan Formosa Plastics announced the price of PVC cargoes for June 2020, with a price increase of $40/ton, FOB Taiwan $670/ton, CIF China reported $700/ton, CIF India reported $740/ton, and a discount of $10/ton
for more than 500 tons.
Subsequently, the Asian market rose by about $60 / ton, especially the Indian market rose by $75 / ton, and foreign markets began to rebound
.

Since March, the epidemic situation abroad has begun to be severe, Southeast Asia and India and other regions began to carry out prevention and control measures, PVC market demand is not good, PVC prices began to fall sharply, and some local enterprises began to seek exports
.
However, with the passage of time, in May, the epidemic situation abroad improved, Southeast Asia, India and other places began to lift restrictions, economic activities resumed, and market demand began to recover
.
It is reported that Formosa Plastics shipped better after offering to India, and sales were completed soon, which shows that PVC demand outside Asia does have a certain improvement or is expected
to improve.
Despite the rise in Asian prices, China's PVC exports are still blocked, and the export arbitrage window is still closed
.

Entering May, the domestic PVC market price volatility higher, on the one hand, the upstream is still a centralized maintenance period, the pressure on the supply side is not large, most upstream production enterprises have a certain pre-sale, and the downstream just need to perform relatively strong, especially pipes, profiles start OK, the basic orientation is good, the market bulls are relatively strong, constantly rising, spot prices continue to rise
.
In this case, domestic enterprises actively carry out domestic sales, and the willingness to export is not high; On the other hand, although foreign prices are rising, domestic prices are also rising, and exports are still inverted
.
I heard that there are export offers FOB Tianjin at 720-750 US dollars / ton, but the East CFR South Asian market price is 695 US dollars / ton, CFR India is at 735 US dollars / ton, obviously there is no advantage in export
.

Foreign demand is gradually improving, and the export enthusiasm of some active exporting enterprises in Southeast Asia and India may be reduced
from April to May.
However, because the early import sources are arriving in Hong Kong one after another, and June may be relatively concentrated, it is expected that the domestic import will still be in a state
of net imports in the short term.