On Tuesday morning, July 14, market sources informed SSESSMENTS.COM on the latest announcement made by the leading Taiwanese PVC producer for August shipment. On a monthly comparison, offers for August shipment surfaced with an increment of between $20-30/ton to all markets, but no volume discount is available this month due to limited allocation.
Comments by market players on the subject as follows:
One of the Indian traders commented, “There is no supporting factor for upward price adjustments for August shipment actually, considering the current demand conditions in India. However, since the leading Taiwanese PVC producer has limited allocations to offer they proceed with a price increase. This August shipment orders wouldn't even be shipped in August as the producer stated they need to clear the backlogs first. By the time they shipped out the August orders, the September price might be out already which is expected to be lower. Our sides would suffer a lot because of this situation.”
“There are two reasons why the leading Taiwanese PVC producer increased their price for August shipment. Firstly, they have around 10,000 tons of July orders not being shipped out yet. Secondly, China's market is still rather bullish at the moment. The response towards the current offers should be good because of the limited volume, with only around 50% from the normal allocation,” an Indian trader shared an opinion with SSESSMENTS.COM.
Another Indian trader said, “Market talks have it that August shipment allocation from the Taiwanese producer is already sold out. On our observation, the Taiwanese PVC producer already has regular customers and their offer is usually not available much in the market. Speaking of the local producers, we expect that their offers at INR75,000-76,000/ton ($999-1,012/ton)-level will increase within this week following the uptrend in import.”
“We did not take offers at $860/ton from the Taiwanese PVC producer because of firm prices cited by the producer, coupled with slow demand as monsoon descended around India. However, we decided to increase our local offers between INR500-1,500/ton ($6-19/ton) to customers in line with upward adjustment on import offers,” one of the Indian traders told SSESSMENTS.COM.
“We received August shipment offers from the leading Taiwanese PVC producer at $790/ton on LC at sight, CIF Ho Chi Minh Port, increased by $30/ton from last month,” one of the Vietnamese traders told SSESSMENTS.COM.
One of the Vietnamese converters pointed out that, “For materials, we usually source from the Taiwanese PVC producer for about 1,000 tons per month but most likely would skip this month's procurement due to sufficient stocks.”
“We do not put attention to new offers from the leading Taiwanese PVC producer as we already secured some volumes for US PVC cargoes last month. Cargoes bought at $750/ton on CIF Ho Chi Minh Port will arrive on July 17,” another Vietnamese converter revealed to SSESSMENTS.COM.
A trader based in China commented, “Timing taken by the Taiwanese PVC producer to announce August shipment offers are not very good because they missed buying momentum from the China market.”
“We are not so sure Southeast Asian buyers would accept price adjustments made by the Taiwanese PVC producer amid slow demand from converters as end-product sales have yet to pick up. With the gap between local and import prices becoming wider with local cargoes already perceived too high, Indonesian players are unlikely to take these offers,” an Indonesian producer told SSESSMENTS.COM.
Tags: Americas,Asia Pacific,China,English,ISC,India,Indonesia,NEA,News,PVC,SEA,Taiwan,Vietnam
Published on July 15, 2020 2:20 PM (GMT+8)Last Updated on September 22, 2020 7:25 PM (GMT+8)
