Asian players: March shipment offers for PVC might firm up

Major overseas suppliers are set to announce March shipment offers for PVC to the region in the coming week and players are expecting to see stable to firmer price levels compared to last month. 

A number of players CommoPlast contacted have not hesitated to express the expectation for $10-20/ton hike citing the support from strong upstream costs and tighter supply condition. In fact, ethylene prices surged to a five-month high on 14 February to $1180/ton CFR Northeast Asia and $1070/ton CFR Southeast Asia, while supply for VCM and EDC is rather limited. 

“The cost-push factor is rather strong. We have to lift prices to reflect the higher production costs,” a Southeast Asian producer said. 

In the meantime, demand in India – the largest PVC importer in the world has been showing signs of recovering from the traditional off-peak season. Despite the financial year in March and the General Election in April, players are optimistic about the near-term prospect in this market. 

“Customers would be even more active once the winter in Northern India is over. A $10-20/ton increased in new prices might not harm the purchasing interest so much,” a trader added. 

Market is on the wait-and-see at the moment with limited trading activities. While the cost factor is stout, buyers prefer to have a clearer insight into the post-holiday demand condition in China before making decision.