Taiwanese major’s March PVC offers to Asia up despite virus fears
The major producer has been steadily applying a firmer pricing for PVC since the beginning of 2020.
Tightness outweighs virus-led concerns
The major producer lifted its March PVC offers by $10/ton to China and India when compared to February with support from the ongoing tightness across regional PVC markets as well as higher offers from US producers.
This hike amount was slightly lower than initial market expectations calling for a $20-30/ton price increase due to the impact of virus-led concerns and the weakness in China’s local PVC market, yet still supporting the market sentiment.
Hike decision followed by other suppliers
Several other Far East Asian PVC suppliers have also followed the footsteps of the major Taiwanese producer, applying monthly increases of up to $30/ton on their March PVC offers to Asia.
“Despite the coronavirus-hit demand, the ongoing PVC tightness across Asia and higher offers for US cargoes have pushed sellers to seek for hikes on their recent offers for March,” a source from regional a producer commented.
China’s local PVC market under downward pressure
Demand for PVC has been sluggish due to concerns over spreading virus, pulling local prices down and causing transport and logistical disruptions.
A Chinese trader noted, “Trading activity has not resumed yet as players have not fully returned to their desks following the extended holiday due to coronavirus.”
Supply from China to mount in SEA
PVC supply from China to Southeast Asia is expected to increase over the near term due to virus-hit demand in China.
A trader in the Philippines opined, “The buying sentiment in China has been depressed due to the growing impact of the virus. As a result, we think that more PVC supply from China will emerge in Southeast Asia amid falling local prices in the country.”
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