On Monday morning, April 20, market sources informed SSESSMENTS.COM on the latest announcement made by the leading Taiwanese PVC producer for May shipment. The offers for May shipment surfaced with a significant reduction, by $160/ton compared to April shipment. However, the amount of reduction is lower than buyers’ expectations. No offers were available to India due to the lockdown.
Comments by market players on the subject as follows:
“We heard that the leading Taiwanese PVC producer is offering between $620-630/ton on LC at sight, CIF basis to converters in Vietnam for May shipment. We will follow the decision and offer at between $620-630/ton on LC at sight, FOB Thailand basis,” a Thai PVC producer informed to SSESSMENTS.COM.
“Although there were no offers to India for May shipment, the producer will consider if there are any bids from buyers. However, buyers are unwilling to submit bids,” an Indian trader commented.
“The reduction announced by the leading Taiwanese PVC producer is not as big as expected. Pertaining allocation, the producer might only be able to sell 40,000 tons,” another Taiwanese PVC producer opined.
“The leading Taiwanese PVC producer decreased offers by $160/ton from April. The adjustment is lower than the indication given last week, by $200/ton. The producer’s current offers are not attractive and it will be difficult to sell at such a level if other suppliers are selling between $40-60/ton lower than the producer,” a global trading house commented.
“A huge reduction made by the leading Taiwanese PVC producer is proof that the PVC market situation is bad. We are waiting for the update of VCM prices and anticipating significant price changes in May,” an Indonesian PVC producer stated.
“There were no offers from Indonesian and Thai PVC producers yet, but it is highly possible that the producers will follow the decision made by the leading Taiwanese PVC producer,” a Malaysian trader commented.
“The leading Taiwanese PVC producer probably will drop offers to India by $160/ton or more when the lockdown is lifted,” an Indian trader told SSESSMENTS.COM.
“We heard that the leading Taiwanese PVC producer concluded deals at $600/ton on LC at sight, CFR China main port basis. The deal level is reasonable as the producer will have to accept firm bids after losing chances to sell to India,” a Chinese PVC producer informed.
“The leading Taiwanese PVC producer’s offers are unworkable in the China market. The producer should open for negotiation and $620-630/ton on LC at sight, CFR China main port basis is acceptable,” a Chinese trader said to SSESSMENTS.COM.
“Initially, the leading Taiwanese PVC producer indicated that the reduction for May shipment offers would be $200/ton, but the adjustment is only by $160/ton. This might be the producer’s strategy, to offer at a higher price and open for bids,” a distributor in Vietnam commented.
“We received offers at $650/ton on LC at sight, CIF Vietnam main port basis. The offers were too high considering VCM and EDC prices. Everyone is expecting prices below $600/ton,” a Vietnamese converter said.
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Published on April 20, 2020 7:15 PM (GMT+8)Last Updated on April 23, 2020 10:07 AM (GMT+8)
