As contacted by SSESSMENTS.COM’s team, the leading Taiwanese PVC producer reveals factors determining August shipment offers. According to the producer, the production cost for PVC continues to increase owing to the uptrend in ethylene prices. On the contrary, caustic soda prices dropped. The producer added that another factor causing high production cost is higher electricity cost during summer in Northeast Asia and Far East Asia.
SSESSMENTS.COM was also informed that the inventory on the producer’s end at the moment is low. Meanwhile, there will be maintenance for EDC, VCM, and PVC plants from August to September. Hence, the allocation for August will be slightly reduced. “Considering all the factors mentioned, offers for August shipment are more likely to be higher than July shipment,” the producer stated.
