Asian PVC players voice March expectations
A Southeast Asian producer reported, “We are waiting for the Taiwanese major’s new offers before we adjust our local offers. We believe that prices will post additional increases of $20-30/ton due to better demand after Lunar New Year holidays as well as upcoming maintenance season. Most players are gradually coming back to their desks and market activities are expected to be fully recovered by mid-February. Meanwhile, peak season traditionally kicks off after the first half of March in line with the warming weather.”
A source from a Taiwanese producer stated, “We heard that the Taiwanese major is going to announce new March prices higher. Expectations are calling for increases above $30/ton. Traders are stocking up aggressively.”
A buyer from India commented, “We feel that the Taiwanese major will approach the market for March shipment at the $1000/ton level.”
An agent in Taiwan reported that the Taiwanese major will increase their offers for March shipment by at least $30/ton to India; however, the seller anticipates increases of more than $40/ton. The seller commented, “Indian PVC demand increased rapidly after early February.”
Additionally, supply is expected to tighten owing to upcoming shutdowns as Hanwha is undergoing a planned maintenance for their PVC line in March-April while Qilu Petrochemical will also conduct a maintenance shutdown in May.
Plus, converters who are running low of inventories are expected to return to the market in the second half of the month. Buyers are planning to build stocks this month as prices are expected to be on an upward trend in the next months.
An Indonesian distributor said, “Some of our customers are trying to stock up more material as they are afraid of paying larger hikes as well as demand for their end products has improved.”
A buyer from China reported, “We are planning to source more than usual as we expect PVC prices to continue to go up in February and March and our end demand is better. Meanwhile, China returned from holidays on a firm note.”
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