Taiwanese major’s May PVC offers to Asia see larger-than-expected drops
Why were rollovers/slight drops expected in the first place?
The sentiment in China’s local PVC market has improved for the past couple of weeks on the back of strong futures, the government’s stricter safety measures following fatal explosions in the country, positive economic data and better buying sentiment after the VAT reduction.
In addition to firm signals from China, the strong energy complex also contributed to players’ rollover expectations for May after steep declines seen in April.
Some players, meanwhile, did not exclude the possibility of slight decreases given the downtrend in India’s local PVC market.
However, the major producer’s recent announcement surprised PVC players across the regional markets.
Details of May pricing
The major producer cut its May offers by $40/ton to India and by $30/to China and other export outlets.
Plus, a $10/ton discount is obtainable for purchases at/above 500 tons.
India’s fading demand amid elections blamed for decline
One of the world’s most populous countries, India, is going to the polls for general elections from April 11 to May 19.
The elections, which have been keeping buying interest and local PVC market under pressure in India now became the key factor behind the major producer’s pricing policy for May, market players concur.
Import PVC in China and India sinks to multi-year lows
Following the major’s May pricing, China’s and India’s import PVC markets have dipped to their lowest levels since August 2016 and late June 2016 respectively, according to the weekly average data obtained from ChemOrbis Price Index.
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