Asia Weekly PVC Report (Week 15, 04-08 Apr 2016)

Market awaits new prices with firmer expectation

In Asia, the PVC market remains mostly stable this week with limited trading activities as suppliers are completing shipment procedure for April delivery cargoes while buyers are waiting for Taiwanese major to announce May prices next week.

In India, healthy demand is fuelling firmer expectation for May shipment offer with a trader commented, “There is very limited number of offer this week, however we think that tight supply and increasing upstream costs might encourage suppliers to introduce fresh hike for May offers. Demand here is still healthy and we believed this condition might sustain until June.”

In China, weakening futures market is casting away the concern about supply tightness with domestic sellers continue to cut local prices by CNY50/t ($8/t) compared to last week to entice demand. A carbide based PVC producer commented, “Our customers are resisting the upper range of the overall offer; yet we prefer to hold firm on our prices amid firming global market. We are not expecting any significant reduction in the near term given higher carbide costs and tight supply recently.”  

In Southeast Asia, demand is not as bullish as the neighboring India market, however the spill-over effect is obvious. Some regional plant issues has been pushing the monomer price up with VCM based on CFR S. Asia gains $45/t over the time span of one month. A pipe converter in the region received carbide based PVC at $760/t CIF Malaysia, LC AS term commented, “As long as demand in India is good, suppliers would continue to lift their prices. Demand for our end product is regular and we are planning to replenish some cargoes in the coming days before the market see higher offer levels.”

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.