Taiwanese major issues surprise hike on Sept PVC offers to Asia
A trader stated, “The producer offers with a limited quantity as they are planning to have a maintenance shutdown in September. We are surprised by the increase amount as we were only expecting a $20-30/ton increase.”
“We were surprised by the Taiwanese major’s latest price announcements as the market activities in India are not doing well due to the ongoing monsoon season. The producer has almost sold out its September allocation; however this is because of the producer’s limited quota for September rather than demand,” reported a trader in India.
A trader based in Taiwan also commented that it is too early to get feedback from the market, but the producer’s hike amounts may face resistance in Southeast Asia where the market activities have slowed recently. However, the producer’s new offers can find acceptance in China due to ongoing upward momentum in the country, according to the trader. Inside China, local prices have seen an upward trend with support from rather limited supply due to maintenance at some carbide based producers, plus due to the G20 Summit and environmental inspections being conducted this month. Futures prices on the Dalian exchange have also been strong since the start of August.
In Southeast Asia, a compounder operating in Malaysia said, “We had expected at most $30/ton from the Taiwanese producer. In Malaysia, demand is not good. We will wait to see other Southeast Asian producers’ September offers which are generally announced in line with the Taiwanese producer’s price announcements. The market outlook is not positive.”
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