Taiwanese PVC major’s first pricing for 2020 matches expectations in Asia
Taiwanese major’s first firm pricing since Sept offers
The major producer lifted its January PVC offers by $10/ton to Asian markets. The last time the producer applied a firmer pricing was for its September offers.
Jan allocation is quite limited
“The major producer’s total allocation for January is 40,000 tons, which is around 15,000 ton lower than its December quota,” a seller informed.
Discounts available for a certain amount of purchase
Several traders reported that the major producer is open to give a $10/ton discount for purchases at/above 500 tons.
Import PVC recovers from 8-month low in India, China market hits 2-month high
Following the latest announcement, import PVC prices on CIF India basis have recently recovered from their lowest levels since mid-April, ChemOrbis Price Index suggests.
Meanwhile, import PVC prices on CIF China basis have reached their highest levels since the second half of October.
Tightness keeps China’s local PVC market firm
China’s local PVC market has been largely gaining ground for almost two months.
The main driver behind firmer prices in China was tight supply following the turnaround season in the November-December period. Disrupted transportation amid harsh winter conditions also reinforced supply issues.
Chinese players also concurred that firmer PVC futures on the Dalian Commodity Exchange caused a spike in local prices. Positive news regarding the official preliminary trade deal between China and the US following a 17-month long trade war supported the futures market.
Demand slowly improving in India
Following a prolonged monsoon season, the high season for PVC applications has already started in India, leading to an improvement in demand despite high inventory levels in the country.
This factor also gave an upper hand to the major producer, market sources lamented.
Asian suppliers already followed suit
The Taiwanese major’s pricing policy traditionally sets the market trend in Asia. Not surprisingly, a local producer in the Philippines has already followed the footsteps of the major and lifted its January offers to its local market by PHP1,000/ton ($20) on the month.
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