August Shipment Offers From Japanese And South Korean PVC Producers To India Gained Good Response
- A South Korean PVC producer announced August shipment offers to India
- PVC demand in India remains on a soft note this week due to the rainy season
- August shipment offers from the leading Taiwanese PVC producer expected to roll over or increase
Indian market participants shared with SSESSMENTS.COM that despite the slow demand conditions, offers for August shipment from Japanese and South Korean PVC producers gained good response. On the week commencing July 6, local PVC offers in India captured stable to firmer. A local PVC producer maintains stable offers from last week. However, the producer is willing to give a discount between INR500-1,000/ton ($7-13/ton) to match the leading Indian petrochemical producer’s offers. From the traders’ end, some traders also decided to roll over PVC offers from last week. In Mumbai, localized Russian and South Korean PVC offers are available at INR70,500/ton ($947/ton) and between INR72,000-72,500/ton ($967-974/ton) on cash, EXW Mumbai basis and excluding 18% GST. While Delhi-based traders increased localized Russian, South Korean, and Taiwanese PVC by INR1,500-2,000/ton ($20-27/ton) due to the shortage of localized Chinese cargoes. So far, no deals concluded yet as traders are still waiting for market responses. In the import market, a South Korean PVC producer announced August shipment offers to India at $10-20/ton lower than July shipment. Due to small allocation and positive responses from buyers, the producer has sold out all allocation for these cargoes. A week earlier, a Japanese producer had also started announcing August shipment offers at $20-30/ton lower than July’s level. While for Taiwanese cargoes, no fresh offers received yet, however, a trader shared buy idea from the import market for Taiwanese PVC August shipment between $800-810/ton on LC at sight, CIF India Main Port basis, $30-40/ton lower than July shipment.
Overall PVC demand in India remains on a soft note this week due to the rainy season. Most factories in north and west India, two areas with high consumption of PVC, are keeping operating rates between 50-60% from normal production amid monsoon season. However, a pipe manufacturer stated that the weather is not significantly affecting the company and the production is still running above 70% from normal production. Additionally, the shortage of workforce is still an issue due to the effect of the Coronavirus pandemic in India. On the supply side, as informed to SSESSMENTS.COM, currently, the availability of import PVC cargoes in India is limited; as such, despite the slow demand, buyers keep purchasing import PVC cargoes.
Looking ahead, Indian market players opined that August shipment offers from the leading Taiwanese PVC producer will be a rollover from July or slightly increase considering high production cost and the upcoming maintenance shutdown at the producer’s end. While local offers will most likely follow the producer’s pricing strategy. As for demand, PVC demand is expected to improve in September or October once the monsoon season comes to an end or downpour becomes less intense, as stated to SSESSMENTS.COM.
Local/localized ethylene-based PVC offers on cash, FD/EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | Purchased* | 73,000 | 980 | Bengaluru |
| India | Offer Given | 75,000-76,000 | 1,007-1,021 | Delhi |
| India | Purchased | 72,000 | 967 | Mumbai |
| Russia | Offer Given | 73,000-73,500 | 980-987 | Delhi |
| Russia | Offer Given | 70,500 | 947 | Mumbai |
| Russia | Purchased | 70,000 | 940 | Mumbai |
| South Korea | Offer Given | 74,000-74,500 | 994-1,001 | Delhi |
| South Korea | Offer Given | 72,000-72,500 | 967-974 | Mumbai |
| South Korea | Offer Received | 72,500 | 974 | Mumbai |
| Taiwan | Offer Given | 73,500 | 987 | Chennai |
| Taiwan | Offer Given | 73,000-74,500 | 980-1,001 | Delhi |
| Taiwan | Offer Received | 72,500 | 974 | Mumbai |
| Taiwan | Offer Given | 71,000-72,000 | 954-967 | Mumbai |
| USA | Offer Received | 71,000 | 954 | Mumbai |
Description: *Offers on FD basis
Import PVC offers, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Given | 850-860 | LC at sight |
| South Korea | Ethylene-based | Offer Given | 830-840 | LC at sight |
| South Korea | Ethylene-based | Offer Received | 830-840* | LC 90 days |
| South Korea | Ethylene-based | Offer Received | 830*-840* | LC at sight |
| South Korea | Ethylene-based | Purchased | 830 | LC 90 days |
| South Korea | Ethylene-based | Sold | 830-840 | LC at sight |
| Taiwan | Ethylene-based | Buy Idea | 800-810 | LC at sight |
| Taiwan | Ethylene-based | Offer Given | 840 | LC at sight |
| Taiwan | Ethylene-based | Offer Received | 830 | LC 90 days |
| Taiwan | Ethylene-based | Purchased | 830 | LC 90 days |
| Taiwan | Ethylene-based | Sold | 830 | LC at sight |
Description: *August shipment offers
Tags: Asia Pacific,English,ISC,India,PVC,Weekly
Published on July 7, 2020 2:15 PM (GMT+8)
Last Updated on September 22, 2020 11:58 AM (GMT+8)
