China’s import PVC market rebounds from 5-month low
Import PVC K67 prices for all origins gained $30-60/ton on the week and were assessed at $1240-1280/ton CIF China, cash basis last week.
“With the earlier-than-expected rebound seen in Indian demand, market sentiment has turned more bullish whilst regional producers hiked their offers further into China,” explained a trader.
Domestic demand picks up
Inside the country, lower domestic inventories have continued to bolster local prices, as well as Chinese export offers.
FOB export offers for August climbed by $30-40/ton last week on the back of lower supply and higher local prices amid firmer futures.
“There is still some buying resistance seen, and end user buying remains on a stock replacement basis. However, the lower domestic supply reflects increased consumption, leading to firmer futures,” said a trader.
Another seller added, “Higher coal prices are also supportive of rising PVC prices.”
Next monthly offers from Taiwan expected higher
Despite the ongoing concerns over the spread of the Delta variant in Asia, improving PVC demand in India and the firm domestic market in China have led players to expect a slight increase in September offers from a major Taiwanese producer.
The producer had applied $50-60/ton decreases on its August PVC offers to Asian markets. This was the third consecutive month of reduction.
Meanwhile, the major producer is planning to run its 520,000 tons/year plant in Taiwan at reduced rates of around 50% capacity during August.
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