May PVC offers from Taiwanese major surpass Asian players’ decrease expectations
Prior to the producer’s announcement, players’ expectations had mostly centered on decreases of around $50-60/ton.
In India, a trader reported that the Taiwanese major officially sold out its May quota to India. “The seller rejected our request for additional quantity,” the trader said.
A source from a Taiwanese producer noted, “The Taiwanese major’s price cut for May exceeded our decrease expectation of $60/ton. Plus, the new offers are subject to a $10/ton discount for purchases above 500 tons.”
A Southeast Asian producer commented, “The Taiwanese major had no other option but to cut its offers significantly as demand from China and India is weak. We think this noticeable amount of drop on prices may help boost the regional demand. Local offers might also be adjusted downward based on the Taiwanese major’s reduction decision.”
A Malaysian plastic end product manufacturer noted, “We are surprised by the Taiwanese major’s May offer. We were not planning source any materials this month, but we have changed our mind after the drastic decrease. We will build up stocks which can last until June when the monsoon season starts in India.”
A regional trader reported that they are already offering to the Southeast Asian markets $20/ton lower than the Taiwanese major’s May offer.
Meanwhile, acetylene based PVC prices in China, which has recently hit a 10 month low given the excessive stocks along with the retreating futures market and stagnant demand, reinforced the downward pressure on the overall PVC sentiment across Asia.
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