Asia PVC market embedded firmer expectation

After settled with April shipment, players in Asia PVC market started to discuss about the May outlook with most players placing bet on a continuous firming trend. 

A trader in India expects another $10-20/t increase for May delivery cargoes from major Taiwanese producer, and anything higher than this range might be resisted, according to him. The source added, “We are not seeing any factor could pull price down at the moment, especially when demand in India is still healthy. Just that prices have been going up too quickly and buyers might not accept another large hike.” Meanwhile, another source informed that there is number of previously purchased cargoes are arriving and this might ease local supply and putting some pressure on sellers.

In contrast, buying interest in China and Southeast Asia was rather disappointed, yet sellers are hoping to compensate this with better sales in India. A Chinese producer commented, “Local demand is not picking up, but we believed that sellers are not in the position to cut their offers given good demand and tight supply in the international market. We have totally wiped out the possibility of price reduction for May, yet we are not expecting any significant increases as well.”

Major Taiwanese producer is expected to announce May shipment offers by mid of April, and this week a Fareast Asian maker has started to test the market acceptance by opening offers to India at $880-890/t CIF term, some $20-30/t above April offers.

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