Taiwanese major’s Dec PVC offers to Asia match initial expectations
Although the ongoing softening in China’s local PVC market and the weakening in the energy complex caused hesitations, the new pricing did not come as a surprise.
Most Asian PVC players were already expecting to see slight increases from the major producer for December due to improving demand in India in the post-monsoon season along with the appreciation of the rupee against the US dollar. The recent steady gains in the Asian spot ethylene market and the ongoing shutdown at Reliance’s PVC unit were also cited as other supportive factors.
A few Indian traders opined, “The major producer has sold out to India in a very short period of time as their allocation for December was quite limited.”
A South Korean producer also revealed its December PVC offers to India with $20-30/ton increases ahead of the major Taiwanese producer’s price announcement.
In China, a trader commented, “The downtrend in the domestic PVC market has continued this week. However, ethylene-based PVC producers have applied increases on their export offers following the major Taiwanese producer’s new announcement. Although they were not able to conclude deals at lower levels last week, now they are standing firm on their offers.”
A source from a local producer in Vietnam noted, “We are considering applying a similar pricing policy with the major Taiwanese producer. We may raise our local PVC offers further by $20/ton by next week.”
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