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Malaysian buyers are delighted this week as Chinese ethylene based PVC emerge in the country again at relatively competitive levels after a long absence that stirred demand for Southeast Asian cargoes up.

Latest offers stand at $870/ton CIF Malaysia, LC AS term, “And we are open to negotiation if buyers are serious about making replenishment,” a trader commented. In fact, Malaysian buyers are very cautious citing that the downtrend might persist in the coming week with demand in China diminished.

A Chinese producer offered the cargoes said, “We are still operating at 60% capacity due to strict environmental regulation. Demand in local China market is weak ahead of the winter season and with major Taiwanese producer cut November offers larger than expected, sentiment becomes heavier.”

More Chinese cargoes are expected to show up in Southeast Asia in the near term now that local supply in China is piling up. Buyers are hoping to achieve deals below the $850/ton threshold, based on CIF term.