Nov PVC offers from a Taiwanese major exceed Asian players’ expectations
A trader in Indonesia reported that they were surprised by the producer’s increase amount on its new November prices as the market is weakening while their suppliers in the import market are still adopting a firm stance. For December, they feel that prices will see a downward correction, but most buyers have to purchase this month as many of them had skipped the month of October in anticipation of seeing lower levels in November.
“We are not sure the reason why the Taiwanese major decided to implement such a big hike on its new prices as there are a lot of inventories in the local market and this is one of the reasons why an Indian producer has not increased its offers yet. In terms of demand, there will not be much activity in the market between October 25 and November 4 due to Diwali holidays. However, demand should pick up again after the holidays. LG is going to have maintenance next month, but we are unsure of the exact date when the shutdown takes place,” reported a trader in India.
Another trader in India receiving new offers from the major said that they found the producer’s new PVC offers to the country quite high. He also added, “Demand hasn’t improved yet; however buying appetite is expected to be better after Diwali holiday in November. For now, we are not positive regarding the market outlook, but we are expecting to see some improvement next month. So far, we received new offers only from the Taiwanese producer, while other producers are yet to announce their new November offers.”
“We feel that PVC prices will drop soon as the prices have already increased too much in the previous months. In Vietnam, buyers are reluctant to buy even at a level below the producer’s new prices,” commented a trader.
A plastic end manufacturer in Malaysia said that they will buy on an as needed basis regardless of whether the new prices will go up or down. The converter also added, “We are not positive regarding the market outlook as the Malaysian economy is not doing well. This Friday, the government will announce a new budget, but we do not expect the new policies will help much for the businessman.”
Before the producer’s price announcement, a plastic end product manufacturer operating in the Philippines had reported that if the Taiwanese producer implemented another $40/ton increase on its offers, the market would not be able to accept it as demand did not fully recover and current price levels were already too high.
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