A Thai PVC producer revealed to SSESSMENTS.COM the consideration for July delivery pricing following announcement from the leading Taiwanese producer. On June 9, the leading Taiwanese PVC producer announced July shipment offers with an upward adjustment around $90-100/ton from June shipment’s level. Regarding the price increases, the producer did not expect the price to increase this much and it was announced earlier than usual. The producer also opined that the significant increases might be supported by the relatively strong demand in India and China. While in the domestic market, June delivery offers were announced last week with an upward adjustment of THB1,500/ton ($48/ton) supported by the demand improvement.
Further explained to SSESSMENTS.COM, June delivery PVC offers in the local market are higher compared to the import offers and it will be quiet difficult for the producer to follow the upward adjustment from the leading Taiwanese PVC producer for the upcoming July delivery as the offers might be more than $900/ton in USD denomination. Considering the stronger Thai Baht against the US Dollar, the producer is less likely to apply hefty increases of $90-100/ton for July delivery offers. “However, it is still in the middle of June and we have to monitor market movement further before making the final decision. Moreover, the meeting to determine the July delivery usually will be held at the end of June,” the producer added.
