Taiwanese PVC major’s first price cut in 2018 exceeds expectations
As was noted earlier in a ChemOrbis Headline Story India’s PVC market sees little impact from bullish China ahead of May offers, players’ initial expectations were calling for rollovers to slight drops as the firming trend in China’s local market, which kicked off in early April amidst firmer futures and maintenance shutdowns, has had a very limited impact on India, where demand remains tepid given the approaching monsoon season as well as the central banks’ ban on some loan instruments.
Following the major’s new announcement, players shared their comments about how the Asian PVC market will be shaped in the near term.
A source from a Chinese producer commented, “It seems that the Taiwanese major is now more aggressive to sell as demand will slow further down in India in tandem with the monsoon season.”
A trader in India said, “The monsoon season will hit India in around May or June. Plus, the central bank’s decision has weighed on the country’s appetite for import PVC as small and middle scale buyers are facing liquidity issues in the absence of letters of undertaking (LoUs) and letters of comfort (LoCs). Still, we think that the major’s May offers will see buying interest as the new levels are reasonable. We also expect a domestic producer to lower its PVC offers this week.”
A PVC compounder in Indonesia noted, “We heard that the Indian market was under pressure from the central bank’s ban on some loan instruments. Yet, we are still surprised by the major’s significant drops on its May offers when the Chinese market is following a firm path.”
A source from an Indonesian producer also opined, “Buyers keep on purchasing on hand-to-mouth basis given the approaching Ramadan while the Taiwanese major’s lower May prices has weakened the sentiment further. We are planning to decrease our May offers by $30-40/ton as well.”
A converter in the Philippines said, “Local traders have reduced their PVC offers by PHP2000/ton ($38/ton) following the Taiwanese major’s May announcement. Now that the local market is on a downtrend, we expect import PVC prices to follow suit.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- ABS prices see more-than-a-year low in Asia, Europe
- Styrene prices sink to multi-month lows in Asia and Europe
- European PET posts double-digit decreases for October
- PVC downturn gains pace in Asia on Taiwanese major’s larger-than expected drop
- Asian spot propylene regains premium over ethylene for first time since 2013
- Import LDPE, LLDPE prices almost back at par with ethylene in China
- Turkish players voice early PP, PE expectations for November
- Thin buying cushions impact of PVC shutdowns across Europe
- China’s PP market makes a strong start to post-holiday period
- Asian ethylene-naphtha spread narrows to 3-year low