Market sources in China and Southeast Asia reported to SSESSMENTS.COM that Indian and South Korean PVC producers are currently under immense pressure to sell their cargoes. On April 7, ethylene-based PVC of South Korean origin were offered below $700-threshold to China and Vietnam market. Despite the offers broke psychological level, buyers are not showing much interest. Some expressed buy idea for South Korean cargoes at $600/ton on LC at sight, CIF China main port basis, $40/ton lower than the initial offer level. ‘’Two of the South Korean PVC producers sold their cargoes to China between $610-620/ton. The volume is 5,000 tons from each producer,’’ sources in China said.
According to SSESSMENTS.COM pricing database, just slightly over a month ago South Korean PVC cargoes were offered near $900/ton to Thailand market while less than a fortnight ago, the same cargoes stood at $800/ton on CIF Malaysia basis. The offers for South Korean PVC cargoes nosedived from $800/ton-level to now at $600/ton-level.
Similarly, market participants claimed that the leading Indian PVC producer is in the same boat as South Korean producers. Market talks have it that the leading Indian PVC producer sold 10,000 tons of PVC cargoes to China market this week. A global trading house stated that the cargoes from leading Indian PVC producer were sold below $600/ton on CIF China main ports basis. At the time of publication, the producer was not immediately available for comment. On April 3, SSESSMENTS.COM reported that the leading Indian PVC producer started exporting cargoes to the global market. During that time, market sources informed the producer’s cargoes were offered to Africa market at $780/ton on LC at sight, CIF Africa main ports basis. Click here to view the related story. Slow domestic demand following 21-day nationwide lockdown imposed by the government and high inventory level are the major reasons behind the producer’s decision to export cargoes and the situation may worsen as Mumbai is set to extend lockdown measures until at least April 30.
