Indian players divided about direction of the PVC market
A trader stated, “We think that prices still have some room to decrease in the near term due to constantly changing feedstock costs as well as sluggish demand, which is not expected to improve during the winter season in the Northern Hemisphere. We think that crude oil prices are likely to decline further in the new year, which will support the existing bearish trend. Buyers will only start to make large scale purchases once prices record a real rebound.” The trader reported that they were offered Taiwanese PVC k67 in the range of $795-820/ton CIF India, cash by different sources.
A second trader made similar comments and said, “Buyers are maintaining their waiting stance as they are now expecting prices to break below the $750/ton threshold. We think that nobody will purchase until prices rebound by at least $20-30/ton.”
On the other side, a trader who received PVC prices at $810-820/ton CIF India, cash for Taiwanese material and at $760-780/ton with the same terms for South Korean origins stated that they might return to the market soon to make some purchases as they feel that prices may pick up at the start of the new year. “Buyers have started to make small purchases in the local market. Although demand has not improved significantly, we think that prices may rebound soon in line with this revival in activity,” a second trader said.
In India, import PVC prices declined $15-30/ton week over week to be reported at $730-820/ton on a CIF, cash equivalent basis. According to data from ChemOrbis Price Index, import PVC k67 prices on a CFR India basis have retreated by around $340/ton since mid-July.
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