Asian players respond to Taiwanese major’s Sept PVC hikes
An agent of the producer stated, “The producer offers a limited quantity as they are planning a maintenance shutdown in September. We are surprised by the increase amount as we were only expecting a $20-30/ton increase.”
An Indonesian producer, who also admits that the Taiwanese major’s September hikes exceed his expectations, opined, “We were expecting an increase of $30/ton at maximum. We think that it will be hard to conclude deals in Southeast Asia as demand is not that strong.”
According to an Indian distributor, the Taiwanese major will not get a good response to their new levels.
On the other hand, a source at a Chinese producer reported, “The Taiwanese major’s recent hikes might find acceptance as local prices in China have been increasing recently in line with the supply tightness stemming from maintenance shutdowns and ongoing environmental investigations. We think that the market will show some resistance in the first place, but prices are expected to remain firm in the short term.”
A producer in Penang also commented that the price hikes were bigger than expectations by saying, “Our expectations were calling for an increase of $20-30/ton. Now that a Taiwanese major approached the market with a $40/ton increase, it will boost the sentiment in China, where prices are already on an upward trend.”
A distributor in Shanghai reported hearing that the Taiwanese major has already sold out their allocation to India.
A trader in Mumbai clarified the current situation by saying, “Market sentiment is not actually good in India and the Taiwanese major’s $40/ton increase is unbelievable. We anticipate that the Taiwanese major’s allocation will be sold out today or tomorrow due to the fact that they are offering a limited quantity.”
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