Asian players: September PVC offers to remains on stable to firmer trend

The Asian PVC market is rather quiet at this point of time as players are eagerly waiting for major regional producers to announce September shipment offers. Expectations have been expressed, and despite the continuous depreciation of local currencies that dampen import demand, sources believed that new offers shall remain on the stable to firmer trend.

To defend such claim, players are pointing to the resilient upstream costs, healthy demand in local China and limited supply from Chinese makers, whose production has been restricted due to stringent environmental regulations. 

“India is still out of the focus,” an Indian trader said. “Demand here is weak partially due to the monsoon. Besides, the steep depreciation of the local currency is killing import business,” the source added. 

“We are informed by the Taiwanese principal supplier that September shipment offers would be announced earlier next week at $10/ton to maintain the momentum. Which mean, we shall expect deals to achieve at unchanged level month on month,” another Indian trader reported.

Meanwhile, the situation is much brighter in the local China market where large-scale converters are ramping up operation rate ahead of the traditional high demand season. “There is a great uncertainty pertaining the demand outlook for import USA cargoes. Buyers are seeking alternative materials and this might continue to support the PVC market in China,” a local maker commented. 

Many converters in China are having low inventories levels and with the current market situation, Chinese producers might continue to cut back on export allocation. However, Southeast Asian buyers are rather cautious, citing a possibility that more USA cargoes might find its way to this market as a result of escalated tension with China and Turkey. “And coupled with the sluggish condition in India, it is less likely that new offers could get a big leap,” another market source said.