Asian PVC players voice expectations for March
After approaching the regional markets with visible increases for two consecutive months, the major producer is mostly expected to apply further increases on its new offers mainly due to supply issues. Apart from the tightness across the global markets, the major producer’s allocation for March is also likely to be limited as it was the case in February.
Healthy demand from India amid high season and strong energy complex, VCM outages across the region and firm PVC futures on the Dalian Commodity Exchange are also cited among other supportive factors.
A source from a major Indian producer commented, “Traders in India are sourcing materials nowadays as they anticipate additional increases from the major Taiwanese producer for March. We think the producer will raise its new offers at least by $40/ton from its most recent levels.”
An Indian trader noted, “We expect to see a new round of increases of around $30-50/ton on the major’s new pricing for March as the producer’s availability is expected to be lower.”
A source from a different Taiwanese producer opined, “We prefer to keep our offers on hold until the major producer’s new offers are revealed. Although we were informed that the major will announce its March offers with $30-40/ton increases by next week, we are still not certain about the amount of increase as there are many factors to influence the producer’s decision. We think prices may move higher until the monsoon season starts in India.”
A Chinese trader also noted, “We think the Taiwanese major’s March offers will indicate a $40/ton increase on a monthly basis. Supply limitations in major PVC markets including the US, Europe and Asia as well as firm sentiment in China’s local PVC market may give an upper hand to the major producer when announcing its new offers for March.”
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