On June 9, market sources informed SSESSMENTS.COM on the latest announcement made by the leading Taiwanese PVC producer for July shipment. The offers for July shipment surfaced with a significant increase of $100/ton to the India market and of $90/ton to the China and Southeast Asia markets as compared to June shipment.
Comments by market players on the subject as follows:
“It is surprising that the producer increased offers for July shipment that much. The increases are too drastic. Indonesian and Thailand producers are most likely to follow the step. However, responses from customers would not be good,” a Malaysian trader opined.
“We are not sure if prices will be workable if we increase July shipment offers between $90-100/ton from June,” a Japanese PVC producer stated to SSESSMENTS.COM.
“The responses toward the latest offers from the leading Taiwanese PVC producer are not good. The increases are too drastic, although the producer justifies the high offers with firm crude oil and feedstock prices. We would like to see if this kind of price could sustain. The leading Indian PVC producer might react by adjusting up local offers further next week,” an Indian trader said.
“We did not expect the leading Taiwanese PVC producer to increase offers this much. It seems that demand in the India and China market is strong. The announcement was also made earlier than usual. We will monitor the market and decide July shipment offers by the end of June,” a Thai PVC producer told SSESSMENTS.COM.
“We decided not to book July shipment cargoes from the leading Taiwanese PVC producer. It is too risky as the monsoon is coming,” a trader in India stated.
“Impact of significant price increases applied by the leading Taiwanese PVC producer to us is limited because the producer has regular customers,” a Chinese ethylene-based PVC producer remarked.
“July shipment offers from the leading Taiwanese PVC producer are too high. Buyers would not accept such a level as local offers are more competitive,” a Chinese acetylene-based PVC producer opined to SSESSMENTS.COM.
“As the leading Taiwanese PVC producer increased July shipment offers to India by $100/ton compared to June, we expect a Thai PVC producer to increase offers by the same amount. We heard that the producer is having production issues due to intensive rain in Thailand,” a distributor in Bangladesh told SSESSMENTS.COM.
“Offers for PVC cargoes from the leading Taiwanese PVC producer via traders increased by $80/ton. We would rather wait for offers from Japanese or Thai PVC producers,” a Vietnamese converter informed.
“Local producers informed us that July delivery offers will increase between $90-100/ton from a month earlier following the decision of the leading Taiwanese PVC producer,” an Indonesian converter reported to SSESSMENTS.COM.
Tags: All Markets,Asia Pacific,Bangladesh,China,English,India,Indonesia,Japan,Malaysia,NEA,News,Pakistan,Philippines,PVC,SEA,Singapore,Taiwan,Thailand,VietnamPublished on June 10, 2020 5:49 PM (GMT+8)
Last Updated on June 10, 2020 5:49 PM (GMT+8)