CommoPlast

Market acceptance of the contentious price hike by PVC major

Market acceptance of the contentious price hike by PVC major



This morning, a major Taiwanese producer surprised the market with the new PVC offer announcement by lifting their prices by $10/t compared to last month amid weakening upstream costs. Many buyers were not even expecting a rollover considering the extreme volatile energy market and a $90/t reduction in ethylene values in just a week.

However, after an initial resistance observed in the market, players started to show some level of acceptance with an Indian customers said, “Buyers might request for a small discount but we think the producer will be able to conclude at least 20,000 tons to India market this month as demand is still steady here.”

Another buyer in Malaysia added, “We are currently waiting for new offers from Thailand and Japanese suppliers before making decision. Yet, we plan to negotiate with sellers to conclude deal at rollover from last month.”

Meanwhile, ethylene-based PVC supply from China is expected to remain tight in the market. This is due to the fact that most makers around Tianjin area are operating at reduced rate following government’s instruction in an effort to curb heavy smog in the capital city of China. A Chinese producer offers ethylene based PVC at $710/t FOB China term said, “We do not have large allocation this month as our plant is running at 70% capacity. Compared to export, local market is still yielding more profit margins recently, hence we plan to focus more on domestic market.”    

Import ethylene based PVC prices currently stand at $720-730/t to SEA and $770/t to India, CIF, LC AS term. Import carbide based PVC is reported at $680-700/t CIF SEA market.  

 

 

Kindly visit our CommoPlast PVC Price Table for China and Southeast Asia market, or contact us at commoplastinfo@gmail.com for assistance.