Signs of slower demand in India ahead of expected Sep hikes from Taiwan
A Japanese producer reported that price levels above the $900/ton threshold are seeing resistance from buyers. “We have not announced our new offers yet as we are waiting to hear a Taiwanese major’s new prices. We expect the Taiwanese producer to announce its offers at around $900/ton. No supply issues are reported for the Japanese materials anymore. However, availability is still limited from other origins, so the market may preserve the firming trend in September,” added the producer source.
According to a source at a Taiwanese producer, although sellers are trying to increase their new offers by $30-40/ton, demand is not strong in India and buyers are showing resistance to higher levels. On the other hand, the source noted, “If acetylene-based PVC offers in China continue to be strong, the Indian PVC market may maintain the current firm trend.”
A trader confirmed that demand has slowed recently as heavy rains have lashed India for the past few weeks.
“Market activities have slowed recently in India due to monsoon season which kicked in a bit late this year. We think that it will be raining very heavily throughout the month. Buyers are giving bids below the $900/ton threshold,” said another trader.
“We started to reduce our operating rates progressively as monsoon season started to take effect. Demand in India has traditionally started to weaken during this period. Moreover, supply levels are reported to be more comfortable as sellers are ready to give discounts to complete sales,” commented a plastics end product manufacturer.
A trader based in Mumbai reported that they can apply discounts of $10-20/ton on their offers for the buyers planning to purchase at or above 500 tons.
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