Asian PVC markets shaken by sharp fall in Taiwanese major’s Apr pricing
Decrease amounts exceed initial expectations
The major producer reduced its April offers by $60/ton to India and by $50/ton China when compared to March. Plus, a $10/ton discount is obtainable for purchases at/above 500 tons.
The decrease amounts exceeded Asian players’ initial expectations which were mostly calling for more moderate drops of $20-30/ton.
India’s slow demand blamed for large decrease
Sluggish buying interest in India’s PVC market in the pre-election period was cited as the main reason behind the major’s pricing.
General elections in India will be held in seven stages from April 11 to May 19.
Taiwanese major’s Apr allocation back to regular
After approaching the Asian PVC markets with limited quotas in the previous months, the major producer’s April allocation reportedly moved back to their regular levels for April, which is 70,000-80,000 tons.
A seller commented, “We think that the sharp fall in the major Taiwanese producer’s new offers would stir interest and help them to sell out for April.”
Import PVC sinks to multi-month lows in China, India
Following the major producer’s first price cut since November 2018, China’s import PVC market has hit a four-month low, according to the weekly average data obtained from ChemOrbis Price Index.
Data also show that India’s import PVC market has dipped to its lowest levels since early December 2018 after gradually retreating since mid-February.
Local PVC in India also weak
Slow buying activities ahead of the general elections caused price reductions in India’s local PVC market as well, with two local producers lowering their PVC offers by INR3000/ton ($43/ton) over the past week.
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