India’s PVC market sees little impact from bullish China ahead of May offers
Supply levels have decreased amidst several shutdowns in China while domestic demand has improved in line with the start of the high season, supporting an uptrend. On the other hand, import PVC prices in India have been mostly stable at their lowest levels since the start of 2018, as can be seen in the below ChemOrbis Price Wizard graph.
Data reveal that the weekly average of import PVC prices on CFR China basis have slightly moved above India for the first time since February 2016.
A few Chinese producers applied further hikes of around $10/ton on their acetylene-based PVC offers to India, pointing to the firming trend in their own market.
“Higher offers from China haven’t seen any interest from Indian buyers, who prefer to adopt a wait-and-see stance ahead of a Taiwanese major’s May announcement,” some traders noted.
The major Taiwanese producer is expected to announce its May PVC offers by next week while players’ overall expectations mostly center on rollovers or slight decreases from April.
A source from the producer said, “We might keep our new prices stable at April levels, yet the ongoing tepid stance of demand in India is likely to exert some pressure on the May outlook despite the bullish sentiment in China.”
The major producer had approached the Indian market with a $20/ton hike for April, which was not followed by most Asian producers given buyers’ lack of appetite.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Local PP, PE offers for July track global uptrend in Saudi Arabia
- Initial ABS prices for July see larger increases than PS in Europe
- Supply constraints spark stronger PE trend than PP in global markets
- ABS, PS uptrend falters in China after H1 2020 ends at multi-month highs
- Stats: China’s total PP imports spike in May; Vietnam and India’s rising shares shine out
- Tight supply drives HDPE, LLDPE gains in Southeast Asia
- European PE markets set for 2nd bullish month on rising costs
- Turkey’s PP and PE markets propelled to a firm start to H2 despite vulnerable conditions
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?