Asian PVC producers are likely to offer their June-arrival cargoes at prices steady or lower from May amid decreasing feedstock costs and sluggish demand, as per Platts. This can be attributed to persistently sluggish demand and rapidly falling feedstock ethylene prices. Feedstock ethylene prices have fallen by US$40/mt week on week to US$1311/mt CFR Northeast Asia.
Asia's largest producer, Formosa Plastics will announce its offer price for June arrival cargoes next week. It had offered and settled its May-arrival cargoes at US$1060/mt CFR China, US$1100/mt CFR India and US$1070/mt CFR Southeast Asia on April 17, up $20-30/mt from April settlement prices.China imports PVC to produce goods for export to the US and Europe. But following the economic crisis, exports have been hampered, weakening demand for PVC. PVC import prices have been rising since November on higher feedstock ethylene costs. Asian PVC prices rose US$167.90/mt or 19% to average US$1047.50/mt CFR Far East Asia in April, from US$879.60/mt CFR Far East Asia in November, Platts data showed.