Players in India report that PVC offers in the import and domestic market are moving lower this week owing to lackluster buying interest from converters, as per Chemorbis. Converters are expecting to see some additional price declines in the days ahead as their customers because of sufficient end product stocks with the customer, who are showing little interest in making new purchases at the present. While traders acknowledged that demand is relatively sluggish at the present, one trader said that they remain hopeful that demand will begin to pick up following the Diwali holidays in early November.
In the import market, a Taiwanese producer managed to conclude some deals this week at prices $30/ton below their initial offer levels, saying that their new done deal level is in line with other regional producers’ price reductions. The producer predicted that their current difficulties would remain in place over the next month as some new capacities are due to start up in the US and they do not expect to see much of a revival in demand next month. A Vietnamese producer targeting most exports to India also reduced offers on FOB Vietnam basis by US$20-25/ton this week, complaining that they were not satisfied with the sales achieved at their previous price level.
In the local market, offers for both domestic and locally-held import materials were revised downward by INR2000/ton (US$45/ton) this week following a decrease of INR3000/ton ($68/ton) announced on offers for domestic material last week. In spite of the consecutive declines in domestic PVC prices, converters stated that they are still unwilling to purchase beyond their immediate needs as they are feeling comfortable with their stock levels for now. Distributors also reported seeing weak buying interest from the local market this week, with most distributors adding that they are only willing to do back to back business these days.