According to market participants, one of the Taiwanese PVC producers released a special price to respond to market dynamics in India. Market sources reveal to SSESSMENTS.COM that the producer offer to the India spot market is usually higher than the contract price, but this time the spot offer remains the same as the contract price is at $840/ton on CIF basis. This special pricing strategy is to increase buying appetite from the COVID-stricken Indian market which will also soon to be whacked by the monsoon. Meanwhile, for other markets, the source told that remain different between contract and spot price. Market players also added that for traders purchasing in big quantities, deals on CIF/CFR can match the FOB price of $790/ton. All import offers on LC at sight.
In the past one working day after the latest offers were released, a source close to the producer reported the reaction from customers around South Asia and Southeast Asia seemed good enough as they quickly placed their new orders. However, the market response from especially India and China is still weak as SSESSMENTS.COM quoted from sources. The source alludes that traders that made large volume purchases are responsible to deliver their cargoes to buyers in any of Southeast Asia and South Asia countries.
