January PVC offer expected softer in Asia

Major international producers are expected to announce fresh offers for PVC to the region in the coming week and players in Asia are looking at softer trend. Buyers are pointing to the fact that USA cargoes are flowing into the region at very competitive prices, in addition to the lack of significant demand in all key markets; there are little supports for a another round of price hike.

An Indian buyer informed, “Market here is quiet as the cash crunch keeps businesses very low. Despite the upcoming maintenance shutdown at one of the major domestic PVC plants, converters continue to liquidate their inventories due to sluggish of end product demand. We think January prices might come down $20-30/ton.”

In Southeast Asia, buyers have been receiving lower offers from Fareast Asian suppliers since last week and this give market more reason to believe in reduction in the coming month. A regional PVC compounder commented, “We have not made any purchases this month due to comfortable inventories on hand. Demand for our end product is weak. We think five consecutive months of price increment have created strong resistance among buyers, and with more competitive prices in the distribution market, we believe it is time for a correction.”