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As major international suppliers completing business for May shipment to regional market after slashing prices by $80/ton from last month, players started to discuss about the possible market direction in the coming month. In spite of strong cargoes off-take this time, Indian buyers continue to see market on the stable to softer note.

An Indian buyer expressed the opinion saying, “We think that actual demand in India is still way below expectation and therefore market still has room for further reduction. We do expect another $10-20/ton discount on import offers from international suppliers in the coming month before market could reach the bottom.”

Buying interest within Southeast Asia remains largely calm and buyers are showing reluctance in making large purchases. A Vietnamese buyer informed, “Domestic pries dropped considerably this week and we only replenished a small quantity from import ground. We are still carrying large quantity of previously purchased cargoes at higher levels. Market might need more time to digest the current stock, hence it is less likely that import ground could revive in the near term.” However, the lower end of the overall price range, especially for carbide based PVC appears to be stable this week, with no prices below the $750/ton threshold reported.

In fact, several Chinese producers are taking firmer stance on their offers after implemented drastic price cut in the previous weeks, which bringing local prices to multi months low levels. A carbide based PVC producer said, “Operating rate among Chinese makers shall reduce as summer is approaching. Though purchasing activities are still weaker than expected, we prefer to hold our prices stable to monitor further development. In addition, our offers are already at the CNY5600/ton ($695/ton without VAT), which is very competitive.” The maker also refused any further price negotiation on export offers.

The upside of the market appears to be limited despite the recent firmer trend in the ethylene sector and couple of plant issues, especially when the fasting month is around the corner. “However, the PVC market plunged deeply this month, hence there might not be any significant price cut in the coming weeks,” a Southeast Asia buyer added.