Indian PVC buyers expecting decreases
For the last couple of weeks, sellers have been trying to stabilize their offers to the country, claiming that supplies are limited following an extended period of reduced purchasing volumes while demand is better. A major Taiwanese producer pioneered stabilization attempts by implementing increases of $30-40/ton on their import PVC prices to India in late December. This was followed by a local producer, who raised their PVC prices to the domestic market by INR2000/ton ($32/ton) shortly afterwards.
A trader reported that they received import PVC prices from a South Korean source at $800-835/ton CIF India, cash equivalent basis. He said, “We find the current import prices to be too high and expect that the market will move back below the $800/ton threshold over the near term as buyers have become cautious again in line with the recent losses in crude oil prices.”
A second trader stated that they were offered South Korean PVC at $810-840/ton and Taiwanese PVC at $820/ton, both on a CIF India, cash equivalent basis. “Converters are still not interested in purchasing as they are waiting to see decreases on the back of softening energy markets. The recent decreases in crude oil prices are likely to hamper sellers’ stabilization attempts," he commented.
A third trader also reported that they received an offer for Taiwanese material at $835/ton CIF India, cash. He stated, “We expect to see levels below the offer we received for Taiwanese PVC. Some sellers are trying to stabilize the market, but we think that plunging crude oil prices will prevent any upward movement in pricing. We think that PVC prices still yet to reach the bottom.”
In India, import PVC k67 prices are currently being reported at $800-840/ton on a CIF India, cash equivalent basis.
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