(Yicai Global) Aug. 4 -- Chinese manufacturers of polyvinyl chloride, also known as PVC, could continue laying low this year if nothing changes in the tepid real estate market or exports.

It is still difficult to predict the demand for PVC this month and in September, Ye Pinhao, deputy general manager of Topchance Petro-Chemical told Yicai Global.

Foreign demand for the material used in pipes and medical devices is relatively weak. If there are no substantial improvements in exports and real estate in the second half, the situation will not be too optimistic, Ye added.

PVC prices have continued to fall to around CNY6,000 (USD888) per ton, down from over CNY8,000, said Jin Li, general manager of Zhejiang province-based Material Industry Chlar-Alkali Chemical. The decline is mainly due to the shrinking demand as the real estate market is in a downward spiral. The US Federal Reserve's interest rate hike has also affected the demand overseas.

The dramatic fluctuations in commodity prices this year have had an impact on traders, Ye said. The Zhejiang province-headquartered company has hedged against the risks through futures and options, he added.

Only two of Hongda Industry's eight hose braiding machines have been operational since June, two fewer than during even low seasons of previous years, Lin Bo, general manager said to Yicai Global. "At present, there are no buyers even though products are in stock, which leads to liquidity pressures," he added.

Editors: Dou Shicong, Emmi Laine, Xiao Yi