Taiwanese PVC major’s firm pricing policy stalls for March
Patchy demand offset bullish factors
Asian PVC players’ initial expectations about the major producer’s new pricing were already calling for rollovers despite the ongoing supply limitations along with stronger upstream and energy costs.
This was because they anticipated these bullish factors would be counterbalanced by the post-Lunar New Year holiday lull across China and Southeast Asia coupled with the cautious pre-election demand in India.
Import PVC stabilizes at nearly 6-month high in India
ChemOrbis Price Index suggests that India’s import PVC market has stabilized at its highest levels since late August 2018 on average following the March announcement.
Players in India are expected to be wary of their trading activities ahead of the general elections, which are due to be held between April and May.
Local PVC offers slightly down in China
After China’s local PVC market maintained its stability in the week after the holiday, suppliers have revised their offers by CNY100/ton ($15/ton) down in the recent days given limited demand.
The mostly softer trend in the futures prices also was cited as another factor weighing on the market. May PVC futures on the Dalian Commodity Exchange have witnessed a weekly decrease of CNY85/ton ($13/ton) as of February 19.
Spot C2 and VCM prices in Asia prop up PVC market
According to the weekly average data obtained from ChemOrbis Price Wizard, spot ethylene prices in Asia have recently reached their highest levels since early October 2018 with support from firm post-holiday demand from China and higher crude oil futures.
The sentiment in the VCM market also remains firm across Asia amid the maintenance shutdown season. Several suppliers including Japan’s Keiyo Monomer and AGC Chemicals will have planned shutdowns from mid-February to late March while Indonesia’s Asahimas is also slated to shut its VCM plant in Cilegon in the March-April period.
To track the most updated VCM and PVC production news, please see PVC Production News (For members only)
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