Players in India are reporting good demand and limited supplies in the local market, as per ChemOrbis. As a result, import offers to the country continue to gain for cargoes to be shipped in late August.
A major Taiwanese producer’s PVC offers for September shipments are expected to be revealed late this week. Until then, several sources have already raised their offers. Another producer located in Taiwan reported concluding deals to India at a new high threshold. “We are receiving a good number of inquiries from overseas buyers for cargoes to be shipped in late August. Demand from India and Bangladesh is particularly good,” a source from the company said to ChemOrbis. He also opines that the Taiwanese major will not offer above their offer level to India. A trader based in Taiwan also said, “We managed to sell some cargoes to India, standing US$20/ton above late last week. Good demand and limited availability are pushing us to raise our offers.” A distributor located in Tamil Nadu, India received PVC offers from the Taiwanese source and the US on import basis with US$50/ton increases when compared to mid July. “These price hikes are stemming from plant shutdowns and supply constraints. However, demand is not very strong and buyers are not rushing to place orders at the new higher levels,” he argued. A distributor in Mumbai also reported offering South Korean PVC US$30/ton higher in the import market when compared to the second half of July. Another distributor receiving these higher levels said, “We are waiting to see our customers’ reaction before engaging in purchases for more PVC cargoes,” he commented. Receiving import offers with further increases over last week, a distributor in Taipei said, “Even though these recent levels are found high and buyers are beginning to order less, PVC inquiries are still in place due to the ongoing supply limitations.” He reported his buy ideas at lower levels.
In India, Finolex Industries shut its 130,000 tpa PVC plant in Ratnagiri in early June due to VCM shortage and it is expected to be restarted in September. Meanwhile, Reliance is planning to shut its three PVC plants located in Dahej, Vadodara and Hazira with a total production capacity of 625,000 tons/year in September for 15 days for maintenance turnaround.