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Taiwanese major’s Sept PVC pricing signals hikes

by ChemOrbis Editorial Team -
  • 09/08/2017 (04:16)
Asian PVC players have been voicing their initial expectations regarding the Taiwanese major’s September announcement for PVC within the next two weeks.

Expectations are mostly calling for increases on the back of plant shutdowns as well as the ongoing bullishness of the Chinese market, which is reinforced by the recent explosions at two plants in the country. Although players concur that demand in India has been slow given the rainy season and GST implementation, they are referring to this as a factor that may limit the amount of increases rather than preventing them. Plus, they do not exclude the possibility of an improvement in demand in September.

In China, a Shanghai-based trader commented, “The Taiwanese major’s September prices will be announced within the next couple of weeks. The producer has no hurry to make an announcement as prices are already on an uptrend. We think the amount of the increase should be more than $30/ton. It may even reach $50-60/ton although demand in the Indian market remains slow given the monsoon season.”

In India, a Mumbai-based converter opined, “We think the major’s PVC offers will be revealed higher for September. Although the Indian market is slow, we think this will not dampen the major’s efforts to raise their new offers as they may divert more allocation to China.”

An agent of the Taiwanese major noted, “We expect increases of up to $20-30/ton for the major’s September announcement. Despite weak demand in India, supplies are limited given the producer’s ongoing shutdown in Mailiao. Meanwhile, China continues to gain further ground, which also supports higher levels.”

A trader said, “We think the maximum hike request that can pass in India is $20/ton as demand is quite stagnant now.” In Far East Asia, a source from the Taiwanese major said, “We are considering an increase in our September offers in the range of $30-40/ton from last month.”

A source from another Taiwanese producer stated that they will not place any offers until the Taiwanese major’s September prices come out. “We think prices should head north in line with firm China and US markets,” a source from the producer noted.”

A source from a Japanese producer reminded that the Taiwanese major will have maintenance at its VCM plant in September and considered reduced supplies as a supportive factor for the major’s firmer September offers.

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