Asian PVC players gauge success of Taiwanese major’s Dec hikes
In China, the producer asked for $40/ton increases for December. The tightness in the country has already caused local ethylene based PVC prices to trade at par with acetylene based PVC prices. “Despite ongoing increases on prices, demand remains stable for PVC. Therefore, we don’t think that hike requests of suppliers will see any resistance in the import market,” commented a trader.
The producer asked for the same amount of increase in Southeast Asia. However, a few players in the region claimed that they were able to secure some material from the producer $10-20/ton below its list prices for December. A trader commented, “Discounts were provided for tonnages of 500 tons and above. The Taiwanese major’s export allocation is around 60-80,000 tons for December. As demand in India has weakened, discounts are offered to the Vietnamese market.”
When it comes to India, the government’s decision to withdraw the high-value banknotes from circulation has caused market activity to stall. For this reason, the Taiwanese major is asking for a smaller hike request of $20/ton to this market when compared to other regions.
“We are not feeling sure whether the major producer’s new offer level will see acceptance when the trading activity is almost muted. Suppliers are looking for ways to divert their cargoes to China as they are struggling to conclude deals in India despite the ongoing supply tightness,” said a trader.
A second trader affirmed the comments about slower sales and tight liquidity in the country. “Buyers are either cancelling their orders or requesting delays in their shipments. However, we do not think that this factor will push the Taiwanese major to revise its offers downwards because supply remains globally tight. If they cannot sell to India, they can shift their allocation to other regions.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Sentiment cautiously rebounds in Asian PP, PE markets
- Asian monomer markets react after crude oil surge
- September hikes meet resistance for ABS in Europe
- Turkey’s import PP market slumps to 3-year low on supply glut, low demand
- Import PVC demand dampened in Europe, Turkey; will it improve in H2?
- Chinese PET producers attempt for hikes first time since July
- Uptrend in spot styrene prices curtailed in Asia
- Spot LDPE, LLDPE prices hit a decade low in Italy
- Saudi major globally applies significant drops on PE for Sept
- Malaysia’s local PE market dives to a decade low