Drastic price increment shy Malaysian PVC buyers away

As major Taiwanese producer lifted September shipment offers by $60/ton from last month, reaching $950/ton CIF Southeast Asia, LC AS term; several other regional makers have also taken similar move claiming higher production costs. However, Malaysian buyers are not supporting such drastic movement, especially those in pipe and profile sector as end product business remain sloppy.

Buyers in the country also reported to have received new offers from Indonesian producer at $70-75/ton hike month on month, reaching $920/ton CIF, LC AS term. A buyer said, “The construction sector here is not strong due to the up-coming general election, demand for our end product therefore very slow. This offer is still below Taiwanese material, however we could not afford to purchase the cargoes too.”

The absence of Chinese materials in recent weeks has given Southeast Asian producers a strong support to lift prices, as buyers need to seek alternative cargoes. However, acceptance appears to be low and another Malaysian buyer added, “We have some stock on hand and might prefer to wait a little longer. Prices are too high now and we think suppliers might need to concede to some discounts in order to attract sales.”