Asian PVC players voice January expectations
In India, following the stiff resistance already seen in India’s PVC market for December hikes from a Taiwanese major, players are now mostly waiting to see rollovers from the producer. A source from a major Indian producer commented, “The Taiwanese producer’s January offers may find acceptance only if they approach the market with rollovers. The market will not digest any hike attempt unless oil prices remain above $55/bbl and PVC futures in China turn up.”
Traders in Pune and Delhi also expect to see rollovers from the Taiwanese major. “There are lots of materials sitting at ports due to the liquidity crunch. Converters are working with very low run rates and therefore, PVC sales are quite slow. However, the Taiwanese producer may still come with a rollover instead of a price cut as they are not under sales pressure while current upstream prices are also supportive,” commented one of them. They also concur about a gradual improvement of demand after January.
A second producer in Taiwan also affirmed the lethargy of demand in India in the midst of the ongoing cash crisis. A company source, however, reminded that Reliance will be undergoing a maintenance shutdown in January, after which the high season should start in the country. “As for China and Southeast Asia, import PVC demand has cooled off considerably as players are sidelined to see the new January price from the Taiwanese major,” he said.
Regarding the pricing strategy of the Taiwanese major, the source thinks that they may come with a rollover and if they do not see satisfactory demand, they may adjust their price down. “Considering that crude and Asian ethylene remains bullish, it will be difficult for them to announce a price cut,” he added.
A trader in Indonesia, meanwhile, expects the Taiwanese major to come with a price decline for January. “Demand is not expected to improve soon in Indonesia considering that infrastructure projects are about to come to an end soon. The producers will have to cut the price,” he thinks.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- Polymer markets set to brace for higher freight rates
- Rising supply dents Jan PE outlook in Philippines as prices plunge to 11-year low
- China’s local PVC market supported by firmer futures, tightness
- PP, PE markets in Mid-East, Africa set to remain weak into 2020
- A new game-changer in Europe’s PE market: US imports
- Turkey’s PE, PP markets close November on weak footing, eyes on Plast Eurasia
- Jan expectations take shape amid opposing factors in Asian PVC markets
- Initial Dec PE, PP offers add to bearishness in China, SEA
- PP raffia downtrend shows no signs of easing in Vietnam
- European PS, ABS markets brace for further drops in Dec