Signs of weakness emerge for May in Asian PVC markets
In India, ongoing liquidity issues as well as a flow of import cargoes weigh down on the market sentiment. Accordingly, a domestic producer cut its prices this week. Bids widely stand $40-50/ton below the current offer levels in the import market, which pushes sellers to concede to discounts particularly in the face of competitively priced acetylene based PVC prices from China.
A similar pressure from acetylene based PVC prices is visible in China’s local market for ethylene based PVC. Players believe that prices are not likely to display a rebound in the days ahead due to stagnant demand and ample stocks. Rather, they think that high sales pressure on acetylene based PVC producers will push sellers to give further discounts. A Taiwanese producer said, “We expect the Taiwanese major to approach Asian markets with decreases.”
In Vietnam and Thailand, local prices are also down this week. Songkran and Holy Week holidays in Thailand and the Philippines caused activities to slow down further. It is not only stagnant demand, but also sufficient supplies put pressure on the market, players concur. “Buyers are reluctant to replenish stocks at the moment as they are waiting to see the Taiwanese major’s May announcements with decreases,” commented some.
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