September PVC markets looking firm in Asia

12-Aug-10
In Asia, most overseas producers have concluded PVC business for August, followed by few announcements of September sell ideas at higher levels. As per Chemorbis, demand is reportedly good in the region, especially in India, reducing overall import supplies spared for China. In China, overall August deals were concluded above the July done deals by around US$10-40/ton. Meanwhile, some producers have already started to announce their new sell ideas for September with up to US$50/ton increases over August done deal level. Overall demand is reportedly good in the country while the import availability is reduced since Asian producers prefer to direct their cargoes to India where the PVC demand is performing well after the monsoon season. Increasing offer levels in India is another reason for the higher PVC sell ideas in China for the next month. PVC offers are increasing inside China, too, as most sellers gain ground from the scheduled plant shutdowns inside the country at the end of this month. Accordingly, local prices moved up by CNY50-100/ton (US$7-15/ton) this week for acetylene based PVC while ethylene based PVC offers remain stable so far. In China’s export market, ethylene based PVC offers already moved upwards by US$30/ton at the high end on FOB China basis. The monsoon season will begin fading at the end of this month in India and most buyers lack sufficient stock levels at their warehouses to feed the PVC demand in that country. Currently, an increasing number of Indian buyers are reported to be returning to the market in order to stock up some materials for their August and September operations. The expectation of higher prices by around INR2000-3000/ton (US$43-65/ton) in the local market also encourages buyers to make fresh purchases. Asian producers claim to receive a good number of inquiries from Indian buyers and therefore they prefer to divert some of their quotas to this market instead of China. Overall import offers given to India have recorded increases of $40-80/ton on a week over week basis. Considering these bullish developments including already higher offer levels in India and the higher sell ideas pronounced in China, sellers are expected find further support to raise their prices in Southeast Asia’s non-Muslim countries, where the PVC demand will not be affected by the traditionally slow season of Ramadan.
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