Indian PVC players evaluate the Taiwanese major’s July announcement

Following the Taiwanese major’s July announcement to Asia with rollovers from June, players in India started to evaluate the major’s decision. Although the producer’s attempt to hold the market steady is anticipated to help the market sentiment, players mostly expect GST to weigh on the market along with the monsoon season.

The producer’s new offers are currently standing at $930/ton CIF India, cash and at $870/ton CFR China/CIF SEA, cash.

A trader in Mumbai noted, “We think the major’s rollover is a positive move and it may help the market sentiment although the market is expected to be weak given the implementation of GST at the beginning of July.”

Another trader noted, “The Taiwanese major informed us that they are receiving good orders from the Indian local market. However, we believe that Indian traders have low buying interest nowadays given the uncertainty caused by the implementation of GST.”

A third trader pointed out that the Taiwanese major’s July allocation to India is 15,000 tons, which is slightly lower than the previous months. Both traders and buyers are calm nowadays due to GST. “We have no idea about how much time the market needs to adopt the tax,” he said.

A trader in Mumbai also stated that they expect stable demand despite the rollover, pointing to GST and the monsoon season.