13 June, 2018
In Asia, PVC offers for July have started to be announced with modest increases mainly due to limited supplies amidst maintenance shutdowns across regional markets. Rising local markets in India and China have also given an upper hand to sellers despite the start of the rainy season.
China’s local PVC market has been gaining ground for the past two weeks with support from firmer Dalian futures, the turnaround season in the June-July period as well as lower carbide supplies amid environmental inspections. In India, meanwhile, local prices have recently stabilized after tracking a firming trend for four consecutive weeks on the back of several plant shutdowns in the country as well as the depreciation of the Indian rupee against the US dollar.
Having cut its PVC offers for two consecutive months, a major Taiwanese producer lifted its July offers to China and India by $20/ton when compared to June. July pricing came in line with players’ initial expectations based on the major producer’s plans to shut its VCM and EDC units in the middle of June for maintenance.
Following the major’s announcement, another Taiwanese producer also lifted its offers to China and India by the same amount, almost at par with the major’s levels.
A Chinese acetylene based PVC producer said, “After the major Taiwanese producer raised its July offers, we have decided not to give any discounts, even for big amount of purchases.”
A trader in India noted, “We have received July offers from a Taiwanese major with hikes. Supplies are likely to remain tight given ongoing shutdowns at several plants across Asia while demand is expected to slow down further given the monsoon rains.”
A converter in Thailand reported that demand inside the country is quite slow given the rainy season. However he said, “We don’t think that producers will decrease their offers from now on as the major Taiwanese producer has already approached the regional markets with increases while China’s local PVC market has also headed north.”