Taiwanese major achieves Sept PVC hikes in China, fails in India
According to the market participants, increases from the Taiwanese major were inevitable considering the plant shutdowns, the ongoing bullishness of the Chinese market and surging ethylene costs. These factors helped the producer achieve its hike targets smoothly in China.
However, players in India were expecting relatively smaller increases given the current state of demand in the country in the midst of the monsoon season and the implementation of GST.
This week some agents of the Taiwanese major had to step back from their initial offers by $10-20/ton in India. Their offers have still not found acceptance among buyers despite their downward revision.
Indian buyers’ resistance to the $60/ton hike has grown recently particularly after the emergence of competitive offers from Iran, Brazil and Ukraine in the import market. Indian local producers, meanwhile, continue to offer at stable levels despite the upcoming maintenance shutdowns. Their pricing policy has also made buyers prefer the local market to the imports.
A trader in India confirmed, “Local producers are offering at much competitive levels, which is giving a hard time to the traders in the import market as buyers are resisting any hike requests. This is the reason why slight discounts also didn’t boost demand for imports.”
End-users are now taking their time to see the market direction as their material consumption is still slow and local demand in India is not expected to pick up until October. Yet, the outlook for PVC remains firm given the fact that the upcoming PVC and VCM shutdowns are expected to drain PVC availability in the local market in the near term.
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