12 April, 2018
Players in India’s PVC market report that the firming trend in China has had a very limited impact on the overall sentiment so far, with prices mostly hovering around last week’s levels. “Demand remains subdued in line with the approaching monsoon season as well as the central banks’ ban on some loan instruments,” a few traders opined.
Supply levels have decreased amidst several shutdowns in China while domestic demand has improved in line with the start of the high season, supporting an uptrend. On the other hand, import PVC prices in India have been mostly stable at their lowest levels since the start of 2018, as can be seen in the below ChemOrbis Price Wizard graph.
Data reveal that the weekly average of import PVC prices on CFR China basis have slightly moved above India for the first time since February 2016.
A few Chinese producers applied further hikes of around $10/ton on their acetylene-based PVC offers to India, pointing to the firming trend in their own market.
“Higher offers from China haven’t seen any interest from Indian buyers, who prefer to adopt a wait-and-see stance ahead of a Taiwanese major’s May announcement,” some traders noted.
The major Taiwanese producer is expected to announce its May PVC offers by next week while players’ overall expectations mostly center on rollovers or slight decreases from April.
A source from the producer said, “We might keep our new prices stable at April levels, yet the ongoing tepid stance of demand in India is likely to exert some pressure on the May outlook despite the bullish sentiment in China.”
The major producer had approached the Indian market with a $20/ton hike for April, which was not followed by most Asian producers given buyers’ lack of appetite.