Contents
- PVC futures (Dalian, contract V) and soda ash futures (Zhengzhou, contract SA) are the world's main price references for these products; no other exchange lists them.
- The exchange price is a domestic Chinese price in yuan per tonne, including 13% VAT, for delivery in China — not an importer's price.
- Path to an import price: remove VAT → adjust for basis and grade → convert to dollars → add packaging, transport and export costs → add destination duty, VAT and inland delivery.
- Use the exchange price mainly as a trend indicator and a basis for formula pricing in long-term contracts.
- All examples are illustrative; for your own numbers use the calculator on our Prices page.
Buyers increasingly see Chinese exchange prices in the news. They cannot be compared directly with an offer, but they can be converted.
What trades on Chinese exchanges
| PVC | Soda ash | |
|---|---|---|
| Exchange | Dalian Commodity Exchange (DCE) | Zhengzhou Commodity Exchange (CZCE) |
| Contract | V | SA |
| Lot size | 5 t | 20 t |
| Quote | yuan/t incl. VAT | yuan/t incl. VAT |
| Delivery | registered exchange warehouses in China | registered warehouses and plants in China |
News usually quotes the most liquid 'main' contract. Outside China, price-reporting agencies (ICIS, Argus, Platts) provide export assessments such as FOB China. Spot prices differ from futures (the basis); carbide PVC is usually cheaper than ethylene PVC.
Worked example: PVC (illustrative)
- 01
Exchange price
4,860 yuan/t incl. 13% VAT → ex-VAT ≈ 4,301 yuan/t.
- 02
To dollars
At about 6.7 yuan per dollar ≈ 642 USD/t (basis assumed zero).
- 03
Export costs
Packaging, transport to Khorgos, clearance, margin ≈ +45 → ≈ 687 USD/t FCA Khorgos.
- 04
Import into Kazakhstan
+15 border/insurance → customs value ≈ 702; duty 6.5% ≈ 46; VAT 16% ≈ 120; inland +35.
- 05
Result
≈ 902 USD/t landed incl. VAT (≈ 783 excl. VAT); about 406,000 tenge/t at 450 tenge per dollar.
Worked example: soda ash (illustrative)
1,000 yuan/t futures → ≈ 885 ex-VAT → + basis ≈ 942 → ≈ 141 USD → + export costs 60 → ≈ 201 FCA → customs value ≈ 216 → duty 5% ≈ 11 → VAT 16% ≈ 36 → inland 35 → ≈ 298 USD/t landed incl. VAT. For soda ash, logistics is over half of the landed cost, so exchange moves matter less than freight and packaging.
How to use exchange prices
- as a trend indicator when reviewing offers;
- to sanity-check an offer with the steps above;
- to time purchases if your schedule is flexible;
- for formula pricing — monthly average exchange price plus an agreed premium (DCE launched PVC monthly-average futures in 2025).
Common mistakes
- comparing exchange prices with CIF or warehouse prices;
- forgetting to remove 13% Chinese VAT;
- ignoring basis and grade differences;
- using the wrong base for duty and VAT;
- using an outdated exchange rate.
Frequently asked questions
Why is the Chinese exchange PVC price lower than an offer for Kazakhstan?
The offer includes export packaging, transport to the border, export costs and often duty, VAT and inland delivery. The exchange price is a domestic Chinese price without these costs but with 13% Chinese VAT.
What is the main contract?
The most liquid futures contract at the moment, quoted in the news; its delivery month rolls over time.
What is the basis?
The difference between the spot price of physical goods and the futures price. In shortages spot is usually above futures; with ample stocks it is close to or below.
Are there exchange prices for PVC and soda ash outside China?
No exchange contracts exist outside China. International benchmarks are paid assessments by ICIS, Argus and S&P Global (Platts).
Can a contract price be linked to the exchange?
Yes — long-term contracts use a formula: average exchange price over a period plus an agreed premium covering grade, packaging and logistics.
Why do exchange moves matter less for soda ash than for PVC?
Soda ash is cheaper per tonne, so packaging and logistics are a larger share of the landed cost; a 10% futures move changes the landed price much less than 10%.
How often should the price be recalculated?
With regular buying — at each new offer and whenever the exchange or exchange rate moves noticeably. The weekly review on our Prices page helps track the trend.
Is the calculation in this article a price offer?
No. All examples are illustrative and show the method; the supply price is fixed in a commercial offer.