Suppliers: PVC prices might head for stabilisation

As major international producers slashed January delivery offers significantly from the earlier months, market players started to look at more of stable trend in the coming month.

There have been reports about some minor improvement in term of demand in India after three depressed months due to cash crisis stemming from the unexpected demonetisation. An ethylene based PVC producer in China reported, “Instead of dead silence like in the past couple of months, several of our Indian buyers are requesting for offers now. Market outlook seems to have better prospect now.” Taiwanese traders are reporting similar situation.

Actual demand in India however remain much weaker than it should be at this time of the year, however, players here are rather optimistic about the outlook. A trader commented, “Purchasing activities might pick up in February after the government announce 2017 budget.” Though this does not seem to be a solid support to some players, it does foster hope among international suppliers.

Major Taiwanese producer might announce fresh prices in the coming week, and it is expected that the maker might rollover their offers from January considering the current energy and upstream costs. Players across the region are more focusing on this perspective to underpin a stabilising trend in the coming months. And if Indian buyers return to the market, it is very likely that market might revive.