Taiwanese PVC major’s Sept pricing to Asia matches initial expectations
In addition to the aforementioned factors, a local Indian producer’s move to lift its local offers early this week with support from the depreciation of the Indian rupee also helped the sentiment. Indian rupee tumbled to an all-time low against the US dollar over last week. Firmer local prices emerged despite the weak stance of demand in India amidst the ongoing monsoon rains.
Following the Taiwanese major’s announcement, players have shared their opinions on how the Asian PVC market’s response will be and whether the major’s decision will be followed by other suppliers.
An Indian agent of the major producer commented, “Our supplier chose not to apply a larger increase and their new offers are also open to a $10/ton discount for purchases at/above 500 tons. This is because they wanted to boost the buying sentiment; especially after a local producer lifted its offers.”
An Indian trader noted, “The major producer manages to conduct sales in the Indian market although their prices stand above the market levels. However, we think that the market’s response to the major producer’s new offers will be slow this time as demand is weak in India given the monsoon season.”
A Malaysian trader opined, “We think that more time is needed following the new PVC announcement in order to see a clearer picture of the market. We prefer to remain on a wait and see mode.”
A source from another Taiwanese producer also noted, “We were expecting to see rollovers from the major producer. The weak stance of demand for PVC has outweighed limited allocation of Taiwanese and Japanese suppliers.”
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