Market players contacted by SSESSMENTS.COM shared their response regarding the latest offers from South Korean PVC producer to the India market. August shipment offers for PVC from a South Korean producer are available at $830-840/ton depending on the amount of volume ordered by customers. These offers are lowered by $10/ton compared to July shipment. Deals for South Korean origin PVC cargoes in the India market mostly concluded at the same level to the initial offers. A trader based in Mumbai told that when other producer release new offers to the Indian market ahead of the leading Taiwanese PVC producer, that gives a signal that competitors have already gauged the trend direction of the offer that Taiwanese producer is likely to announce.
SSESSMENTS.COM observes that South Korean PVC producer succeed to secure volume from the market. Market talks have it that the cargoes are already sold-out because of limited supply, while others are saying that supply volume from the producer would be normal. At the time of publication, the producer could not be immediately reached for confirmation. Even though the demand in India starts to slow down, downstream players still voiced out their intention to procure some cargoes since the available supply of import cargoes can be considered limited for the time being.
South Korean PVC producer's decision may influence the Taiwanese PVC producer's pricing strategy, in turn taking a different decision from what they signalled, SSESSMENTS.COM noted. Although the leading Taiwanese PVC producer has already signalled to market players their intention to lower export volume due to maintenance at the company’s plant and to increase the price because of high production cost, market players said that the producer’s hands now are tied due to the latest development. Market players expressed their opinion that there is not much room for the leading Taiwanese producer to increase August shipment offers or even roll-over when competitors have started dropping prices.
Transactions for import ethylene-based PVC, CIF basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Location |
|---|
| South Korea | Offer Given | 830-840 | LC at sight | Nhava Sheva |
| South Korea | Offer Received | 835 | LC 90 days | Chennai |
| South Korea | Offer Received | 830-840 | LC at sight | India |
| South Korea | Offer Received | 830 | LC at sight | Mundra |
| South Korea | Offer Received | 840 | LC 90 days | Mundra |
| South Korea | Offer Received | 830 | LC at sight | Nhava Sheva |
| South Korea | Offer Received | 830-840 | LC 90 days | Nhava Sheva |
| South Korea | Purchased | 830 | LC 90 days | Nhava Sheva |
| South Korea | Sold | 830-840 | LC at sight | Nhava Sheva |
Tags: Asia Pacific,English,ISC,India,Korea,News,PVC,Taiwan
Published on July 7, 2020 6:28 PM (GMT+8)
Last Updated on September 15, 2020 4:49 PM (GMT+8)
