Asia Weekly PVC Report (Week 11, 07-11 Mar 2016)

Asian market expects firmer PVC prices

The Asian PVC market has completed another trading week on a firm note thanks to healthy demand in India and firming upstream costs. Regional players have expressed their expectation for further price hike in the coming days with many gauging a range between $40-60/t higher.

In India, early this week market received a brand new offer from one of a major Taiwanese maker with $40/t increased from last month to reach $840/t (excluding ADD), CIF India, LC AS term. Meanwhile, a trader informed, “Our Korean supplier intends to announce April offers at $860/t CIF India next week. Demand in India is good and firming ethylene costs is supporting the supplier’s move. We think the market would accept $850/t level.”

China market is not sharing the same sentiment and flagging property investment is downplaying buying interest. This, however, does not discourage sellers from lifting their offers to local buyers thanks to a number of plant shutdown keeps supply in check. A Shanghai based trader commented, “Buying interest in local market is rather lethargic as buyers are resisting higher price levels. Export business is doing much better now and we think that firming international trend might not stimulate domestic trade so much. We are currently waiting for the Taiwanese major to open new offers.”

In Southeast Asia, demand is seeing a gradual pick up, although it is not on the same pace across countries. Indonesian buyers are reporting slow sentiment amid firming local prices. Meanwhile, a Vietnamese trader received Chinese ethylene based PVC offers at $780/t CIF Vietnam, LC AS term said, “Resilient demand in India, firming ethylene costs and series of shutdown would elevate price in the near term; therefore we are planning to replenish some quantity now. We expect demand in local market to improve in the near term.”

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

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