Asian PVC markets indicate stable to soft trend for September

25-Aug-11

In China, overseas PVC producers have started to settle their business for September shipment cargoes this week after announcing rollovers on initial prices for Asian origins from the upper end of the August done deal range, as per ChemOrbis. According to players' reports, initial settlements are at orUS $10/ton below sellers' initial offer levels on CFR China, cash basis. Flat settlements on August VCM business with only slight increases being sought for September, amid slowing PVC demand in China on concerns about global economies are the factors weighing down on the September PVC outlook. It is also the end of the high season for many PVC applications. Demand is still not considered to be robust, with many converters operating their plants at around 50% of capacity due to the unspectacular performance of end product markets. In Southeast Asia, PVC players are also holding a generally stable to softer outlook for September, although initial import offers for September indicate rollovers to slight increases compared to August. Pointing to the weak economic outlook and the Ramadan lull in Islamic nations, Southeast Asian PVC buyers are showing strong resistance to Asian sellers' new prices. A source at a Chinese producer, who rolled over their prices for September from August, complained that prices were considered high by Southeast Asian buyers while another source at a Taiwanese producer reports unchanged prices amid very slow demand and lower bids from buyers.