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It is the time of the month that major Taiwanese producer would announce new PVC offers to the Asia market. Players in the region are now actively discussing the possible market trend in Feb 2016 with many expecting some upward adjustment in term of price from major producer.

An international trader commented, “Plunging energy market has created tremendous negative impact on market sentiment in the past week, hence we expect the Taiwanese major to delay their new price announcement till next week. We think Feb offer might carry $20-30/t hike from last month due to firm ethylene costs and reduced supply level.”

A Chinese producer underpins healthy local demand besides lower operation rate at main local markers as support for firmer expectation. A producer source said, “Local prices continue to firm up slightly this week while we are not having much allocation as our plant just restarted from a maintenance shutdown. The environmental issue has forced many producers in China to run at low rate which further tighten the supply level.” An Indian player added, “Prices remained stable due to limited supply in the market, and we are hearing demand for pipes are picking up, however, we are feeling uncertain if further price hike will bump into buyer’s resistance.”

In Southeast Asia, import acetylene based PVC is reported $15/t higher compared to last week to reach $685-690/t CIF SEA basis.

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