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India PVC sees first hike attempts after weeks of declines

by Merve Sezgün - msezgun@chemorbis.com
  • 08/07/2021 (03:24)
Import PVC prices in India have recently witnessed slight upticks after 10 straight weeks of decreases. Most sellers have adopted a firm stance on their offers this week in line with some earlier expectations that the market may bottom out soon after the Taiwanese major’s $130/ton July drop.

Accordingly, import K67 prices for all origins were slightly up by $10/ton from last week to be assessed at $1350-1450/ton CIF India, cash. The high end of the range represented offers for Japanese origins while offers for South Korean K67 formed the low ends.

Import PVC K67 prices – CIF India

Slightly improved demand encourages sellers

Most sellers withdrew their low offers from the market this week to come back with higher levels after they saw buying interest slightly improving. Some converters have started to stock up at the lower ends of the market, fearing that prices may have reached their bottom level.

“Import PVC trade has seen aggressive buying at low-end offer levels. But these offers soon dried up, leading to suppliers withdrawing from the market and raising their low-ends,” said a Mumbai-based trader.

A South Korean producer raised import offers earlier in the week from $1300/ton to $1330-1340/ton, at which level they saw enthusiastic buying. “Soon the producer withdrew from the market and returned with higher offers,” said another trader.

Meanwhile, a Japanese producer reportedly raised its K67 offers by $50/ton to $1450/ton CIF India but soon they started to reject bids at that level.

“We also saw a Thai producer rejecting bids at $1410/ton after sealing deals at $1380/ton CIF, cash just three days ago. All suppliers are now either holding their offers or withdrawing from the market to return with higher offers,” the trader added.

Expectations for Aug start to be voiced

A major Taiwanese producer is expected to announce its August PVC prices to Asian markets early next week.

According to most players, the producer may match its August prices with the latest import offers in the spot market. The major had last month cut offers by $130/ton to $1390/ton CIF India for July.

Some players were initially expecting the producer to cut its August offers by as much as $90/ton, considering the persisting demand concerns amid the COVID-19 situation in Asia. However, the recent hike attempts from Korean, Japanese, and Southeast Asian producers have helped sentiment shift in the country and pushed Indian players to revisit their August expectations.

“We were hoping for another big cut by the Taiwanese major for its August cargoes to India. But we’re now expecting lower drops, following the hikes by the Koreans,” a trader opined.

If the recent gains in the spot market prove sustainable, the producer may even approach the regional markets with a rollover or a slight increase, some also argued.

However, the majority of players are skeptical about a price increase in the monthly offers since the major producer’s July offer at the $1390/ton CIF India level is still above the market’s current low ends.
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