Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:
 

Will Taiwanese PVC major be able to achieve hike targets for April in Asia?

  • 21/03/2017 (08:20)
The Asian PVC markets opened the week with April price announcements from a Taiwanese major, which was initially expected last week. The producer raised its new April PVC offers to regional markets by $20/ton from March in line with players’ expectations.

Currently, Asian PVC players are evaluating the major’s increase decision with some reporting that new levels are unworkable amidst disappointing buying interest, despite the start of high season for PVC applications, plus the availability of more competitive prices in their local markets.

In China, a producer confirmed muted buying interest in the country as converters are reluctant to make new purchases despite their low inventory levels. “We do not think the major’s new price levels are workable as China’s local prices on an FOB basis are lower than that of the Taiwanese producer. In addition, local producers and traders are applying discounts on the ethylene-based PVC offers since last week in order to attract buying appetite,” added the producer.

Similarly in India, a converter reported finding much lower prices in their local market compared to the Taiwanese supplier’s new prices. “Even though the increases are within the market expectations, we are not planning to buy from the major as we can secure material in India at a price lower than the landed cost of this offer. Therefore, it is better to buy from the domestic market,” further stated the buyer.

A trader also commented that PVC demand in India is not as good as expected; however players believe that Indian buyers will have to accept higher offers as they will have only two months of buoyant activity before the monsoon hits their market again.

A Taiwanese trader noted that the major’s new offer is subject to a $10/ton discount for purchases at and above 500 tons. However, traders are generally giving lower prices than the major’s new offer in order to remain competitive in the market.

On the other hand, some players in Southeast Asia reported that the producer’s new prices are workable, pointing out that the high season for PVC has begun.

“The Taiwanese major’s new prices are workable in Vietnam as domestic demand is gradually picking up due to the warmer weather. In line with the supplier’s increase announcement, we will adjust our prices up later this week or next week,” said a producer in Vietnam.

A PVC compounder in Thailand also opined that their local prices may increase in April due to higher prices by the Taiwanese producer while another compounder in Indonesia reported that they have found the $20/ton increase acceptable at the moment.
Free Trial