Early October PVC sell ideas surface higher in India
A major Taiwanese producer approached the Indian market with price hike intentions of $20-30/ton for October.
“We intend to increase our October shipment offers by $20-30/ton as supply levels have been reduced in the market and demand is expected to increase, particularly from India because of the coming end of the monsoon season. We are planning to reduce operating rates at our 450,000 tons/year PVC plant at Kaohsiung in October and November due to a lack of ethylene supply. PVC availability is not low only from Taiwan but also from South Korea, Japan and Indonesia. We also expect to see a pickup in demand as monsoon season will end soon. With regards to Hanjin Shipping’s bankruptcy protection, there will be supply disruptions, but we do not think that it will immediately affect the market. Its impacts will probably be seen in the next few weeks,” commented the producer source.
Before the Taiwanese major, another Taiwanese producer reported increasing its October shipment offers by $20/ton to India. “We increased our offers to see the buyers’ response. So far, it is not bad,” said a source from the producer.
A trader operating in Singapore reported that after mid-September, demand should improve as traders did not replenish much stock during the monsoon season. He also added that higher PVC offers may surface for October but increase amounts will be small since buyers may show resistance to larger hikes.
“Surprisingly, we are still getting some inquiries from India’s market, but we are not able to allocate any materials. Our production is limited, so we are focusing on the local market. Regarding Hanjin’s bankruptcy issue, we think that it will create supply disruptions, particularly for Korean producers, and this will support the PVC market. PVC prices will also be supported by improving demand from India now that monsoon season is coming to an end,” said a source from a different Taiwanese producer.
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