Asian PVC players trim hike expectations for April
A major Taiwanese PVC producer is expected to announce its new April offers to Asian markets at the beginning of next week while expectations regarding the producer’s awaited announcement initially called for increases of around $20-30/ton, smaller than the $60/ton hikes passed on March deals.
However, some regional players have recently trimmed their hike expectations down to around $10/ton by pointing to softening futures while a few of them opined, “The major producer may even apply rollovers on its new offers as demand in India remains disappointing despite the ongoing high season while Chinese buyers are showing resistance to the recent gains in import offers.”
In China’s local PVC market, the sentiment has already been weak since the end of the Chinese New Year holiday, defying the firm global trends in the face of softer futures and slow trading activities. May PVC futures on China’s Dalian Commodity Exchange recorded a week over week decrease of CNY370/ton ($58/ton) on March 12.
In India, the PVC market maintained a stable to firm trend last week thanks to limited supplies across the globe and the high season, with the weekly average of import prices hovering around its highest levels since September 2014. However, some players commented, “The major Taiwanese producer may lift its April offers by around $10-20/ton; but we think that further hikes will not see acceptance easily in India as demand is quite weak while traders’ supply levels are high.”
A trader in India said, “The PVC sentiment across Asia has turned softer this week given softening futures in China. We think that the Taiwanese major may not be able to achieve further hikes for April despite the recent rebound of spot ethylene prices in Asia.”
Meanwhile, an Indonesian trader noted, “Rumor has it that the Taiwanese major’s April pricing will come with further increases of $10-30/ton. However, we think it will be difficult for the market to absorb further hikes as demand is quite slow nowadays.”
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