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Market journey north on limited supply and healthy demand

In Asia, the PVC market extended the firming trend based on solid support from firming upstream costs, limited supply and healthy demand in India market. In fact, a production issue at a major Indonesian maker has push VCM costs in the region up $20/t compared to last week  

In India, a Korean producer decided to lift their prices by $30/t compared to the last offer to reach $890-895/t CIF India, LC 0-90 days term. A trader commented, “Demand is still good, however buyers started to show certain degree of reluctant toward the higher range of the overall price level. Our principal has only a small quantity this week, and they managed to sell out without any discount. We think the firming trend to sustain until late June before the monsoon start in July.” Players are expecting that continuous price increment would create more space for carbide based PVC to penetrate India market in the coming month. 

In China, local supply is tightened as a result of domestic suppliers moving cargoes to other export destinations for better margins, yet, demand remains disappointed. A carbide based PVC producer informed, “We have concluded several deals to S. Asia market this week at the level $770/t CIF term and we expect higher level in April. We might focus more on export in the near term since domestic buyers are only replenishing hand to mouth basis.”   

In Southeast Asia, prices continue the firming path amid several production issues within the region. However, buying interest is not as strong as expected. An international said, “We open to negotiation, but most of our regular buyers are very reluctant to make fresh purchases. It seems converters have already stock sufficient cargoes. We are holding bullish expectation for April in line with the current firming upstream costs.”

A summary of import PVC prices to the region is shown in the following table:

For detail Daily Prices in China and Southeast Asia market, kindly visit our website at www.commoplast.com. Please contact our representatives at commoplastinfo@gmail.com for log in assistance.