In China, after PVC sellers wrapped up their November business with increases of US$10/ton from October, Asian producers re-emerged with further increases on December import offers to the country, as per Chemorbis. Although some PVC sellers had commented that they started to lose confidence in the market direction for the medium term due to the imminent winter season along with the upcoming year-end, new December offers have come with further increases to China this week. Suppliers pointed to tight domestic availability in China amid good demand as the main reasons behind their hike decisions. Rising domestic prices, as well as the bullish market trend in other polymer markets were amongst the other factors supporting December price hikes. As several PVC plants in North China were shut due to the government’s measures to meet the country’s emissions targets for plants performing in polluting and energy-intensive industries, prompt availability was reported to tighten further, thereby providing a firmer ground for sellers.
A major Taiwanese producer is now seeking US$30/ton increases from November offers on offers for December allocation to China on the back of tight supplies due to reduced run rates at their plant. A Thai producer also reported issuing US$20/ton increases on December offers due to similar reasons, even as the company is pleased with current sales performance. Traders also followed a similar pricing strategy as they raised prices for Asian origins by US$20-40/ton for December, with most sellers voicing their confidence that their new offer levels will find acceptance on the buyers’ side given bullish market dynamics overshadowing the slower performance of end-product businesses.
Although there were no December price announcements to Southeast Asia as of early this week, the sentiment has firmed in that region in line with China. The Indian PVC market already saw a US$40/ton increase from a major Taiwanese producer, as demand picked up in India, as buyers have returned to the market from holidays to replenish their stocks.