Taiwanese major sold out PVC allocation in China

According to market sources, a major Taiwanese PVC producer has completed selling the assigned allocation for December delivery to China today, after implementing $40/ton hike earlier this week. This is the fifth month in a row the maker lifted prices for export, accumulating some $200/ton increased from last July to China and Southeast Asia.

A trader commented, “Our supplier managed to conclude deal without any major discount. Demand here is still healthy given lack of availability in local market.” This indicated a very promising outlook for PVC market in the near term, considering the 30-40% increased in allocation to China this month as a result of weak demand in India. A market source added, “Demand in India might not revive any time so soon, yet with such buying appetite in China, the regional PVC market might sustain the firming trend in the coming months.”