Taiwanese major struggles to sell April PVC allocation
by ChemOrbis Editorial Team - content@chemorbis.com
Players across Asia are still reporting resistance to the April offers of a Taiwanese major despite the revision made on March 22, two days after the announcement of its initial offers, upon unsatisfactory buying interest. The producer lowered its offers by $20/ton to $1010/ton CIF India and $950/ton CIF China/SEA, bringing its latest offers back to March levels.
In India, players reported that the ongoing resistance stems from the availability of more competitive offers, currency issues in the form of misprinted or counterfeit currency as well as the end of Indian financial year which pushes buyers to keep lower inventory for balance sheet purposes.
According to market sources, the Taiwanese major allocated 80,000 tons of PVC for April shipment. When compared to their normal allocation, it is 15,000 tons more than the usual. A global trading company said, "As of this morning, we were informed that the Taiwanese major only managed to sell 60-70% of its allocation so far. In current market situation, it is not easy to conclude deals particularly when the sentiment continues to weaken each day."
Similarly, a source from a second Taiwanese producer reported that the Taiwanese major has managed to sell only 60% of its total allocation so far despite the high season in India and China. "Compared to previous week, our offers remain at $950/ton CIF SEA and $1000/ton CIF India. Since the Taiwanese major is not able to sell well, we are also affected. With crude oil and ethylene prices declining, buyers prefer to position themselves in a wait and see stance," a producer source commented.
A Taiwanese trader commented, "It is unlikely that the Taiwanese major will revise its offers again, even if they manage to sell out or not. If the producer decides to lower its offers again, this may cause larger drops."
In India, players reported that the ongoing resistance stems from the availability of more competitive offers, currency issues in the form of misprinted or counterfeit currency as well as the end of Indian financial year which pushes buyers to keep lower inventory for balance sheet purposes.
According to market sources, the Taiwanese major allocated 80,000 tons of PVC for April shipment. When compared to their normal allocation, it is 15,000 tons more than the usual. A global trading company said, "As of this morning, we were informed that the Taiwanese major only managed to sell 60-70% of its allocation so far. In current market situation, it is not easy to conclude deals particularly when the sentiment continues to weaken each day."
Similarly, a source from a second Taiwanese producer reported that the Taiwanese major has managed to sell only 60% of its total allocation so far despite the high season in India and China. "Compared to previous week, our offers remain at $950/ton CIF SEA and $1000/ton CIF India. Since the Taiwanese major is not able to sell well, we are also affected. With crude oil and ethylene prices declining, buyers prefer to position themselves in a wait and see stance," a producer source commented.
A Taiwanese trader commented, "It is unlikely that the Taiwanese major will revise its offers again, even if they manage to sell out or not. If the producer decides to lower its offers again, this may cause larger drops."
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