Asian makers slashed PVC prices to Malaysia; cautious buyers want more discount

In a theme of steep price cut set by a major Taiwanese producer earlier this week, more makers started announcing October shipment offers to Malaysia with $50-60/ton reduction from September.

Southeast Asian cargoes originated from Indonesia and Thailand are seen at $880/ton CIF Malaysia, LC AS while South Korean materials are priced at $860/ton with the same term.

Demand in Malaysia is not all strong, sources said, as many buyers have stocked up cargoes before the Sales and Service Tax take effective on 1 September. “The government has green-lighted hundred of projects that were previously on-hold for inspection, yet, players wanted to see a clearer market direction. Budget 2019 will be announced in the first week of November and we think purchasing activities would be better,” a source said.

“We are currently asking for an additional $10/ton discount on South Korean material. With weak demand in India, suppliers might agree to our bids,” a pipe maker said.

Other buyers are waiting for deals for South Korean cargoes to materialize, which could provide some bases for negotiations with Indonesian and Thailand producers.