India’s PVC market draws firm outlook for August
Additionally, availability concerns given some shutdowns in the region contribute to the picture. Apart from satisfactory buying appetite from India, limited availability from Japan, South Korea, China and the US are widely cited as reasons for firmer expectations regarding next month.
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A Japanese PVC maker reported that demand in India remains healthy despite the fact that the monsoon season already kicked off. “We expect a Taiwanese producer to unveil $10-20/ton hikes based on supply constraints across the region, even in Japan as a producer was not able to resume production as was scheduled by end June following a turnaround,” a source from the supplier noted.
A second Japanese source also plans to lift their offers for August shipments by $30/ton citing still good demand from India and limited supplies from Taiwan. Similarly, a South Korean PVC producer was said to have delayed their restart while their August allocation would depend on their ethylene supplies.
PVC markets in China and Southeast Asia demonstrated a firming as well over the week although it was driven by restricted supplies rather than a bright demand. A stable to firmer outlook in those Asian markets also lend a hand to firmer expectations in India. Chinese producers, who have raised their export PVC offers for the past two weeks, reported good demand from India.
“Although we have received many inquiries from India, we are not so eager to make offers due to longer payment terms and the high antidumping duties for acetylene based PVC in the country,” said a producer source. Meanwhile, in addition to export prices, China’s local PVC market moved up further this week amidst rising futures market and supply concerns ahead of G20 Summit that will be held in September in the country.
A Mumbai based trader commented, “All overseas suppliers already sold out their July quotas as demand from India remains satisfactory.” Indeed, a Taiwanese producer has already come with an additional $20/ton increase for July shipments to this country.
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