PVC players at odds about a rebound in India amid upcoming Diwali
The major Taiwanese producer, who announced its November offers with $60/ton drops, allocated a limited quota of 20,000 tons to India and concluded deals only with its regular customers.
Traders reported that South Korean and Japanese producers also warned their customers in India about their limited availability for November.
“Supply from Ukraine is also low due to a producer’s turnaround next month. Meanwhile, shipments from the US have been delayed owing to a fire at Westlake’s VCM unit. We are yet to receive any offers for Brazilian PVC, either,” a trader based in India noted.
Considering supply limitations from overseas markets, several players believe that India’s import PVC market has already bottomed out. The overall range for import PVC k67 prices was stable to $10/ton higher last week.
On the other side of the coin, there are others who believe that the market might continue to soften at a slower pace as demand is yet to revive amid ongoing currency risks and the upcoming Diwali, which will be celebrated on Wednesday, November 7 and the festivities will last five days.
A few players reported that market activities were slow inside India since buyers already started to retreat to the sidelines ahead of the holiday.
“Besides, the rupee might depreciate further against the USD as there will be state elections in November and December. The upstream markets are also weak, which may also put pressure on PVC prices in the near term,” a trader commented.
Spot ethylene prices in Asia have recently moved under the $1000/ton threshold on CFR Far East Asia basis, according to ChemOrbis Price Wizard.
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