Vietnamese PVC players: Taiwanese major’s March shipments dealt with discounts

Players in Vietnam’s PVC markets reported that the major Taiwanese producer has conceded to giving discounts in March shipment deals, as the producer has still not been able to sell out their monthly allocation in any of the regional markets, including India.

Earlier this week, the major producer announced March PVC K67 prices to Asian buyers with a $30/ton increase from February at $820/ton CIF India, $795/ton CIF China, and $790/ton CIF SEA. This followed a $20/ton hike in their price notifications for the current month.

A converter in Vietnam reported that he closed a deal for the major producer’s March shipments at $760/ton CIF, cash. The level indicates a $30/ton decrease from the initially announced level and mostly a rollover from February.

“We heard that the producer is yet to sell out its March quota. Demand remains weak across Asia, and it looks like prices may see further corrections. On the other hand, Japanese sellers stay firm on their offers and refuse to accept lower bids given their tight availability,” the buyer commented.

A trader, also in Vietnam, noted, “We are hearing deals for Taiwanese major’s March material at as low as $755/ton CIF, cash. The producer faces sales pressure, as they haven’t been able to sell the entire March allocation to India. Moreover, China has ample supplies amid stagnant domestic demand. Chinese sellers are trying to ramp up exports, which puts extra pressure on Northeast Asian suppliers.”

Traders in India, meanwhile, said the Taiwanese major allocated about 20,000 tons to the country for March. “We expect about 15,000 tons to be sold, with the rest being directed to other regions, if not set apart for April,” one of them said.