Taiwanese major sold out PVC allocation to India, demand revived

After slashing May shipment offers for PVC by $60/ton from last month, a major Taiwanese producer has sold out all allocation to India market without any additional discount. The concluded prices stand at $970/ton CIF India, LC AS term.

Sources close to the producer reported total export allocation for May is at approximate 68,000 tons, with 25,000 tons sold to India, 20,000 tons to China and the remaining is for Southeast Asia and other markets.

“Buyers are becoming more active to make replenishment this month. Most suppliers are able to move quantity very easily in India as converters are running low inventories from limited replenishment over the past month,” a trader said.

The effect of the recent ban on the issuance of Letters of Undertaking (LoUs) is gradually subsiding, allowing the market to return to the normal state. “It supposed to be the high demand season at the moment, and we feel more optimistic about the near-term market outlook,” another market source added.

Players also reported having made good purchases for South Korean PVC in the range $970-980/ton CIF India, LC 0 – 90 days term, underlining the revival in purchasing interest in this market.