Asian players expect firmer PVC prices for August shipment

As most players have concluded July business, buyers in the Asian PVC market is now waiting for major Taiwanese maker to open August shipment prices, which is expected to be announced this week. Market is generally looking at firmer offer levels considering healthy demand in India and tightened supply due to plant shutdown.

An Indian trader expects some $40/ton hike compared to last month from Taiwanese major commented, “Demand in India is unexpectedly healthy even amid monsoon season. However, it is uncertain on the market acceptance if overseas supplier lift offers in large extent. There is very limited cargoes available at the moment, and this could be the major factor support prices in the coming month.”

Both Formosa Plastic Corporation and Taiyo Vinyl Corporation are planning to take one of its PVC lines off-stream for a month long maintenance works in August. In addition, several plants in China, which are anticipated to down adjust production rate during mid-end of August in compliance with government’s measures to filter air condition ahead of G20 Summit; are creating expectations of further supply restriction in the coming month.

A regional buyer said, “We think market has hit the bottom, therefore have replenished some cargoes to cover our need for the next two months.”