A South Korean PVC producer announced July shipment offers to India market with adjustment of up to three digits. As informed to SSESSMENTS.COM, July shipment offers for ethylene-based PVC cargoes from the producer stood at $850-860/ton on LC 90 days, CIF Nhava Sheva Port, $120/ton higher compared to June shipment. The notable adjustment was made on the back of the tight supply in the domestic market as most local producers in India have sold out June delivery allocation. However, the current offers are deemed unreasonable and too high. As such, market players believe that these offers would not sustain.
Similarly, taking the sharp adjustment into account, Indian market participants opined that July shipment offers from the leading Taiwanese PVC producer will most likely increase up to $100/ton. However, considering the volatile market due to the COVID-19, when the import PVC prices dropped, which expected to happen for August shipment, the decrement will also be drastic, as stated to SSESSMENTS.COM. In the domestic market, offers for localized Taiwanese ethylene-based PVC cargoes via a distributor remain unchanged from last week and are available at INR72,000-75,000/ton ($955-995/ton) on cash, EXW Mumbai basis and excluding 18% GST.
