Taiwanese major slashes May shipment offers for PVC to multi-year lows

It is reported that a major Taiwanese producer has announced fresh PVC offers for May shipment to the region with $30/ton reduction from last month, sending the latest price list to $860/ton to India and at $820/ton to China and Southeast Asia, all based on CIF/CFR, LC AS term. The export price stands at $790/ton FOB Taiwan. A discount of $10/ton is available for purchases above 500 tons. 

The reduction is larger than the initial market expectation and it does not escape the market’s attention that these are the lowest price levels since August 2016. It appears that buyers are responding very positively towards the latest offers. 

“We plan to place larger order this month. The new prices are rather acceptable. Though June is the traditional slow season in Vietnam due to the raining season, we do not expect prices to drop much further,” a Vietnamese pipe maker commented.   

In India, several buyers have shared similar expectation calling for a near-bottom market while raising the expectation that converters would be more active this time. “Other suppliers such as Japan, Russia and Ukraine might offer lower, but we expect a better number of transaction,” a trader added.