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(ICIS) --
China’s PVC paste market prices have been the lowest of the entire year,
industry sources said on Friday.
The delivery price of glove materials in
East China is about yuan (CNY) 10,000/tonne ($1577) and the delivery price of
leather materials in East China is about CNY9,500/tonne, lower by 25% and 30%
respectively compared with the highest prices of 2011.
In supply, the
upstream PVC paste plants face great pressure from overstocking because of poor
sales in a weak market.
The total inventory of all large plants is more than
40,000 tonnes, taking up over 70% of stock capacity, according to data from ICIS
China.
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However, as they are still profitable, upstream producers are reluctant to
cut operation rates to ease the inventory pressure, according to industry
sources.
The demand for PVC paste is sluggish as the glove industry, which
mostly relies on export, has difficulty with sales as it is badly affected by
European debt crisis.
Product prices keep dropping due to sluggish demand
and the fact that the leather and tool industries are in off
season.
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