Asia Weekly PVC Report (Week 9, 22-26 Feb 2016)

Healthy demand supports firmer PVC prices in Asia

In Asia, PVC market firmed up this week following a price announcement from a major Taiwanese maker which read an increased of $30-40/t compared to last month. This has encouraged other regional producers to implement a similar level of price hike on their cargoes.

Indian market has entered the seasonal high demand for PVC, according to players and this has allowed the Taiwanese major to sell out their available allocation to this market within a day after the new price announcement. A trader in this market commented, “Local demand has improved significantly while limited supply from both domestic and international producers keeps the near term outlook positive.”

Both carbide and ethylene based PVC producers in China have also lifted their export offers to Asia market this week, however, carbide based PVC makers are struggling in concluding deals to India market due to high anti-dumping duties. An ethylene based PVC producer added, “We have sold out March allocation mostly to export market as demand in local China is not encouraging. Our domestic customers are not achieving full operation rate after the long holidays yet, hence, they prefer to be on the side-line despite firmer prices.”

In Southeast Asia market, demand has started to show some signs of improvement, and the expectation of further escalation in PVC offers has persuaded buyers to take extra quantity. A converter in Malaysia explained, “Our Indonesian supplier has just completed expansion work at their plant and we received very competitive offers from them. We have secured sufficient stock now but we might make additional purchases as we expect further price hike due to a number of shutdown in the coming month.”

A summary of import prices to SEA and India market is shown in the following table:

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