PVC sellers in Asia informed SSESSMENTS.COM on the latest adjustments to test buyers’ appetite as global lockdowns ease. Previously, the leading Taiwanese PVC producer announced offers for May shipment to the Asia market with a hefty reduction of $160/ton compared to April while offers for Japanese cargoes witnessed a steep downfall of more than $200/ton. However, the latest offers to and from China as of May 7 recorded a different direction, with producers adjusting up import and export prices significantly.
According to the leading Indian PVC producer, the company decided to raise offers to China market by $30/ton compared to a week earlier. The latest offers by the producer stand at $630/ton on LC at sight, CIF China main ports basis. The producer revealed to SSESSMENTS.COM the increases are primarily due to some maintenance shutdown at Asian PVC plants and a pick up in domestic demand. However, the response is tepid and customers insist on a lower price.
Similarly, a South Korean PVC producer contacted by SSESSMENTS.COM also made the same move. The producer initiated a sharp price increase of $50/ton from last week’s level for May shipment. The source disclosed that the reasons behind the price hikes include limited availability from the company, consecutive increases in China’s PVC futures market as well as the producer believes demand will pick up in later part of May and June. ‘’As the outlook seems positive, we decided to raise PVC offers to China,’’ stated by the producer source.
In the export market, China’s largest acetylene-based PVC producer implemented price hikes of $80/ton on export offers compared to a week ago, now at $760/ton on LC at sight, FOB China basis. The producer source said to SSESSMENTS.COM maintenance shutdown at the company’s PVC plant this month and also at the second-largest acetylene-based PVC producer’s plant are the main reasons behind the increment. On top of that, as lockdowns in other countries will be lifted soon, with more and more factories resume their production, the demand should be better.
At the centre of the world’s largest PVC import market, offers for localized PVC cargoes in India also recorded an increase. A local trader raised offers for localized Russian PVC cargoes by INR1,500/ton ($20/ton) compared to the previous week. The trader stated that the number of inquiries from customers has improved, however, consumption is still below 50% from normal, in general estimated around 25-35%. ‘’In Mumbai, many of the factories remain shut because the permission is only given to those doing packaging business for essential products so far. While outside of Mumbai, most of the factories are back in operation as the government eases the lockdown in those areas. While starting from May 7, factories in Delhi are also permitted to operate. For Mumbai, it seems the lockdown will only be lifted May 17 onwards,’’ the trader explained to SSESSMENTS.COM.
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