Print

A major Taiwanese producer might announce February shipment offers for PVC in the coming week and sources are expecting some increases from the last prices. However, Asian buyers are rather conservative about the extent of price increment, calling for $10-20/ton hike with the support from improved sentiment in India market.

“Upstream costs are firm and demand in India is recovering from the monsoon season. However, we would like to monitor the condition in China since the Lunar New Year holiday is approaching soon,” a market source commented.

While there is hope that Chinese buyers would restock before taking off for the holiday, there are also concerns that suppliers here would unload cargoes to clear warehouse spaces, too. 

“In fact, we have been approached by a Chinese carbide-based PVC producer for cargoes to ship out by end of the month. This is not usual for us,” a Malaysian converter reported, adding that the producer offer carbide-based PVC at $805/ton CIF Malaysia, LC AS term.

As informed earlier, there have been reports that the Chinese government is encouraging local PVC producers to increase the export quantity. Rumor has it that an export target has been given of approximately 100,000 tons, however, the information has not been verified at the time this report is published.

“Despite the potential pressure, our principal supplier has indicated firmer price levels for February. We are waiting for the official price list while holding optimistic expectation on the demand from Indian buyer,” a distributor selling on behalf of the Taiwanese maker added. 

Country
China  India  Malaysia