Initial December expectations call for rebound in India’s PVC market
Post-monsoon demand and the recent appreciation of the rupiah against the US dollar were cited among the factors shaping players’ initial expectations. Plus, players expect replenishment activities to revive after the Diwali holiday, which starts on Wednesday, November 7 and lasts for five days.
An agent of the major Taiwanese producer commented, “We expect the major to announce its December offers with increases from last month. We think that Indian end-users will return to replenish stocks after the end of the holiday while the recent strengthening of the rupiah is also supportive.”
A trader also opined, “We think that the major Taiwanese producer’s December pricing will indicate a $20/ton increase from last month as the Indian market is performing relatively better nowadays after remaining soft for more than two months.”
He also underlined that players are following the developments in the energy market, the new wave of US sanctions on Iran, the impact of the lingering trade tension between China and the US along with elections in India.
On the other hand, some players argue that the ongoing softening trend in China’s local PVC market coupled with falling spot ethylene prices in Asia may hinder the major producer’s any possible hike attempt despite the aforementioned supportive factors.
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