A regional trader based in Singapore shared with SSESSMENTS.COM on the possibility of August shipment offer level from the leading Taiwanese PVC producer. This week, market talks have it that a South Korean PVC producer has announced August shipment offers to Malaysia with an increment of $10/ton compared to July shipment and are available in the market at $770/ton on LC at sight, CIF Malaysia Main Port basis. However, the trader opined that considering slow demand in Southeast Asia and India market due to the rainy season, the upward price adjustment is not viable.
As for August shipment offers from the leading Taiwanese PVC producer, the trader expects a rollover. The trader opined that if the producer raised their August shipment offers significantly, the producer will need to trim it by a huge amount for September shipment as PVC prices will be on a downtrend for September shipment, as stated to SSESSMENTS.COM.
More added, according to the trader, several producers in Asia are considering to increase export volume due to the slow demand in the domestic market. Due to sluggish demand in Japan, the trader heard that PVC producers in this country mull to increase export volume for August shipment. Likewise, in Southeast Asia, a Philippines producer plans to move cargoes to the export market. However, the major concern from the Philippines producer is that their export prices might be unworkable considering the high production costs if VCM price remains firm, SSESSMENTS.COM was told.
