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After the Taiwanese major announced October delivery cargoes at $40/ton hike compared to last month, other regional producers have attempted to implement similar hike. However, demand in Southeast Asia has been the weakest amongst Asian markets, especially in Malaysia, and persistent weak buying interest have encouraged sellers to step back on their hike target to entice demand.

A pipe converter in the country received Thailand PVC offers at $880/ton CIF Malaysian, LC AS term informed, “Our suppliers cut prices by $20/ton, however, we have sufficient inventories, hence not in rush to make additional purchases. We think prices might near to the peak, as demand is very weak at the moment. However, we might need to monitor the purchasing appetite in China and India further.”

Another buyers reported receiving Indonesian PVC at $10/ton reduction from the previous offer at $875/ton CIF Malaysia, LC AS term commented, “We plan to replenish a small quantity as we think this offer is very competitive.”

Healthy demand in China and India might help to keep the overall PVC market on the firm track in the near term; however, Malaysia buyers might find it difficult to accept further hike amid weak end product business. Import PVC to Malaysia currently stand at $875-880/ton CIF Malaysia, LC AS term.