Import PVC prices for August have been announced with increases in India and Southeast Asia on the strength of higher upstream costs. Demand was said to be somewhat stronger in India when compared with China, as per ChemOrbis. Last week; import PVC prices in India increased US$10-25/ton last week for American origins while offers for Asian origins gained US$10/ton on the low end of the range. Traders said that demand has picked up recently as many buyers are actively purchasing cargoes on fears of further price increases in the days ahead. One trader claims to have sold a large amount of South Korean PVC to India at prices standing at the top end of the overall import range for Asian origins.
A trader in Southeast Asia also reported receiving initial August offers for Thai PVC at prices US$30-60/ton higher than the July done deal levels for Southeast Asian origins, with the trader commenting that they are planning to wait to receive some additional offers for comparison purposes before making their next purchasing decision. In a reversal of expectations, players active in the region’s local markets began predicting rollovers to increases on August business after players had spent most of July expecting further price decreases for August.
Much of the recent reversal towards expectations of rollovers or slight increases on August PVC deals can be traced to the effects of stronger upstream markets. Crude oil prices are nearing the US$100/barrel threshold on the Nymex for the first time since early June while spot naphtha prices on a CFR Japan basis have increased by around US$90-95/ton from the start of July. Initial August offers for VCM from major Japanese producers have been reported with increases of US$50/ton from the producers’ July done deal levels while spot ethylene prices on a CFR Northeast Asia basis are up around US$55/ton when compared with the same period in June.