Indian buyers resist new PVC prices; Vietnam market sees discounts

Following the March shipment price announcement at rollover from last month from a major Taiwanese producer, Indian PVC buyers are not showing any strong interest in making replenishment, totally contrast to the market’s initial expectation. 

The producer’s latest price list stand at $950/ton to India and $900/ton to Southeast Asia and China, all based on CIF/CFR, LC AS term.

“Most companies are facing liquidity issues and demand is a bit slow due to no project approval ahead of the General Election. The producer might not want to lower prices but buyers would like to discuss the payment term,” an Indian trader commented. 

Prior to this, a couple of distributors commented on the stable price levels saying that cost-push is strong but limited demand in China cap market’s ability to advance. 

Apparently, demand for PVC in Vietnam is not strong either, and the Taiwanese maker is facing tremendous pressure from other competitive cargoes. In fact, other Taiwanese and Thailand cargoes are available at $870/ton while USA materials are in the range $850-860/ton negotiable. 

“The market seems a bit soft. With the current demand condition, we might need to concede to some discounts to entice demand,” a trader said.

Meanwhile, Vietnamese buyers are expressing the buy ideas for USA cargoes at around $800-820/ton CIF term. “We are waiting for Japanese producers to announce new prices. However, we do not expect the offers to hit the $900/ton mark,” a compounder said, adding that he has comfortable inventories while end product sales have not been very encouraging. 

The expectation for April outlook, therefore, flipped quickly.