Taiwanese PVC major offers its unsold Sept quota to India with hikes

A source from a major Taiwanese producer reported that they have recently started to offer their unsold PVC allocation for September to India with an increase of $40/ton from their initial announcement level for this month.

The producer initially announced its September PVC offers to India with a $60/ton increase from August at $1010/ton CIF, cash. The producer’s k67 offers for September shipment currently stand at $1050/ton CIF India, cash.

“We have around 10,000 tons of PVC left for September and we started to give higher offers for this allocation as of today. Our current price is not subject to any discounts even if the purchasing volume is high,” the source noted.

A trader commented, “The Taiwanese major is giving higher offers for its unsold September allocation nowadays. They were unable to sell it earlier as Indian buyers’ resisted their hike request in the first place. However, buyers are likely to accept that the sentiment will remain bullish in October amidst firm ethylene and growing supply concerns across the global markets.”

A second trader affirmed, “Demand remains weak in India, yet PVC prices receive support from upstream costs, the bullish run in China as well as a series of shutdowns in the US after Hurricane Harvey.”