Players: Limited supply might push PVC market higher

As the Asian PVC market concluded businesses for September, most players are now waiting for major Taiwanese producer to announce October delivery offers, which is expected to be in the coming week. Yet, many are pointing to firmer prices given limited supply and expected recovery in demand as monsoon season comes to an end.

An Indian trader informed, “Domestic demand is still stable and might improve in the near term. We initially expect some $20-30/ton hike for October delivery shipment given shutdown at major supplier’s plants. However, several cargoes got delayed due to the Hanjin Shipping Co. issues, which might encourage sellers to implement larger hike than expected.”

Indeed, a Fareast Asian trader who reported to have 90 of forty footer containers being impounded in Singapore main port due to the Hanjin bankruptcy case. The source said, “Most of the containers are PVC that were scheduled for our customers in Bangladesh. We are not sure how long it would take for us to clear these parcels, and at the moment we only can wait. Our customers might need to purchase material from other sources to meet immediate need.”

Supply tightness from the USA, Iran and Fareast Asia suppliers now become even severer. A Korean producer informed, “We have very limited quantity for Vietnam market recently as we try to fulfill orders from Myanmar and India customers. We think market outlook for September and October is rather positive.”