July PVC expectations call for hikes in Asia
The major producer’s plan to shut its VCM and EDC units in the middle of June for maintenance is cited as the main factor behind players’ expectations towards a firmer pricing.
Apart from this, supply restrictions in India amid several turnarounds and the firming trend in India’s local PVC market also contribute to these expectations despite the arrival of the monsoon season as well as the recent softening in the energy complex.
A source from the major producer noted, “We will try to raise our offers for July shipment. Yet, the announcement is still under discussion.”
A trader in India commented, “New prices from Taiwan are likely to be announced next week. Players believe that July offers might see hikes of around $20-30/ton due to the fact that the supply pressure might intensify amid plant shutdowns. However, we should also consider the possible impacts of the monsoon season on India’s demand for PVC.”
A trader in China opined, “The major producer is expected to announce its July offers with increases of $20-30/ton by next week. Japanese and South Korean producers have increased their done deal levels for the past two weeks and we will see whether the major producer will follow their pricing or not.”
A compounder in Malaysia also said, “We prefer to adopt a wait and see stance until the Taiwanese major announces its July offers, which are mostly expected to be revealed with increases given limited availability.”
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