Jan PVC expectations divided in India amid long supplies, improved demand
Sellers are mostly predicting a stable to firmer trend based on growing seasonal demand, strong ethylene costs as well as the fact that prices have already posted notable decreases in the last two months. On the other hand, some buyers are hopeful to see additional price relief in line with high inventory levels on traders’ side.
Last week, import PVC prices in India tracked a mostly stable trend despite some overseas producers’ previous attempts for slight hikes. “The market sentiment has started to improve in accordance with the high season in the pipe sector. However, this is yet to be reflected in prices as lack of supply issues is casting a shadow on growing demand,” commented a few players.
Regarding the awaited announcement of January PVC prices, an agent of the Taiwanese major noted, “The producer might approach the Indian market with rollovers or increases of $10-20/ton from December as we believe that prices have already hit their bottom level. Demand is improving in line with the season while upstream costs remain firm. The recent recovery in China’s local PVC market may also support sellers if they decide to take a firmer stance on their January offers.”
Some players, on the other hand, prefer to take a cautious approach to the expected price announcement, saying, “Demand is not bad thanks to the season, yet it needs to strengthen further for a shift in the sentiment. We believe that ample supplies might put a cap on suppliers’ hike targets for January.”
A trader said, “Demand is likely to reach the peak in February while some local sellers are still open to give discounts on their offers. Therefore, we think the Taiwanese major’s January pricing may emerge with further decreases of around $20/ton.”
In November and December, the major Taiwanese producer applied respective decreases of $70/ton and $50/ton on its PVC offers to India.
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