On Tuesday morning, market sources reported to SSESSMENTS.COM that the leading Taiwanese PVC producer had announced November shipment offers. Compared to October’s levels, the latest offers surfaced with a reduction of $30/ton to all markets, and a discount of $10/ton is applicable for purchases of 500 tons and above.
Comments by market players on the subject as follows:
“Fresh November shipment offers from the leading Taiwanese PVC producer surfaced in India market with a reduction of $30/ton compared to October, captured at $880/ton on LC at sight, CIF basis. However, we consider the latest offer level from the producer is not competitive as the price is deemed costlier than Ukraine, Russia, and Saudi origin,” one of the Indian traders commented.
“Considering a hike in ethylene and VCM prices, we are quite surprised to see a downward adjustment from the leading Taiwanese PVC producer for November shipment,” the leading Indian PVC producer commented.
“After adding a $10/ton discount, the latest offer level from the leading Taiwanese PVC producer to India market should be reasonable and acceptable,” an Indian trader based in Kolkata opined.
“Allocation for November shipment from the leading Taiwanese PVC producer has been sold out in India market in one day. Transactions were mostly concluded at $870/ton on LC at sight, CIF India Main Port basis, most buyers voiced out that the offer level from the producer is attractive; hence, willing to procure the cargoes,” a global trading house informed.
“Following the leading Taiwanese PVC producer’s pricing strategy, we decided to trim the offers for November shipment by $30/ton to India, China, and Southeast Asia market as well,” a Japanese PVC producer informed.
“Due to supply shortage following the previous maintenance work, the total allocation for November shipment from the leading Taiwanese PVC producer remains limited. Previously, the producer shut its PVC unit with a capacity of 520,000 tons/year from September 10 to September 27 for maintenance purposes,” a source with knowledge of matters in Taiwan told SSESSMENTS.COM.
“Some customers in Shanghai and Vietnam reported receiving offers from the leading Taiwanese PVC producer for November shipment. Responding to the offer level, most buyers in China and Vietnam gave a lukewarm response to the offer level,” a Taiwan-based distributor reported.
“As overall global demand for PVC remains on a slippery slope, a downward adjustment of $30/ton for November shipment from the leading Taiwanese PVC producer is predictable,” an Indonesia-based converter commented.
“For November shipment, we predict that local PVC producers in Indonesia and Thailand would decrease their offers in line with the adjustment made by the leading Taiwanese PVC producer,” a Malaysian converter opined.
