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Asian players see stable PVC outlook

by ChemOrbis Editorial Team -
  • 28/01/2016 (03:11)
Players in Asia report that the outlook for the PVC market is showing signs of stabilizing after a Taiwanese major reportedly concluded their February allocations without conceding to a discount, defying initial buyer opposition to the seller’s initial monthly price hike of $10/ton.

A trader based in India stated, “We heard that a Taiwanese major managed to sell around 15,000 tons, primarily to east and south India, without giving a discount and is no longer offering additional quantities to the market. Demand from the pipe sector is slowly starting to pick ahead of the high season for agricultural pipes, which begins in March. Meanwhile, Chinese acetylene based PVC is largely absent from the market as producers claim that they can achieve better netbacks when selling to their domestic market.”

A converter based in India added, “Japanese sellers are offering at prices close to the Taiwanese major’s initial offer after the Taiwanese supplier reportedly sold out their cargoes without giving any discounts. We are negotiating with our Japanese supplier now and hope that they will agree to a small discount from their initial offer levels.”

Another converter commented, “Demand has shown signs of improving after the past few days and we believe that market activity will see some additional pick up after the end of February. We believe prices will follow a largely steady trend over the coming month.”

A trader offering Japanese material stated, “We believe that overseas sellers will continue coming to India in large volumes over the next few months as demand from other export outlets such as Africa and Turkey has been disappointing. In addition, we believe that Southeast Asian buyers will be more reluctant to purchase material from outside the region once Asahimas finishes their expansion project, which will raise their capacity from 300,000 tons/year to 600,000 tons/year.”

A source from a Thai producer said that they mostly sold out their cargoes for February while adding that prices have stabilized a bit following the Taiwanese major’s price increase for February. “We have been seeing good demand from both India and SEA and are considering increasing our allocation to India next month. We believe that demand will remain healthy after the upcoming Chinese New Year holidays,” a producer source reported.
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