Asian PVC offers rise, healthy buying interest from China for March

Offers for import PVC offers to Asia announced in mid-January were raised by US$70-90/ton vs January prices. Most producers have reported sales for the better part of their February allocations at or close to their initial offer levels, with additional price hikes announced by several sellers on their remaining February allocations, as per Chemorbis. Limited availability in Asia, rapidly rising feedstock costs and healthy buying interest in China have support these price hikes. Producers in Southeast Asia plan significant increases on their February offers to local markets in line with bullish sentiment from China and rising feedstock costs. After conclusion of most of their February export allocation to China at US$1010-1020/ton CFR China, at or close to their initial offer levels, a Taiwanese producer has announced a further increase of US$30-40/ton on their balance February allocation to US$1050/ton CFR China, cash. The decision for the price hikes was guided by an optimistic market outlook for March post Chinese New Year holidays, along with steadily rising ethylene and VCM feedstock costs. Meanwhile, a trader offering American PVC reported deal conclusion for late February at US$980-990/ton CFR China, cash, twenty dollars more than their initial deal levels for February and US$80-90/ton above their January sale prices. These offers were raised in line with a price hike of US$20-30/ton from their supplier in America, adding that they are holding an optimistic outlook for March due to their expectations of better demand for that month as well as higher upstream costs. In Southeast Asia, H2-February import offers have been hiked amid deal conclusion in local markets for January while expressing higher sell ideas for February. Few PVC compounders reported receiving February import offers at US$1030/ton CIF SEA, cash, a ten dollar increase over initial February import offers. In the region’s local markets, January business is being wrapped up with producers having successfully achieved nearly the full extent of their price increase targets for the month. A producer in Indonesia expressed a sell idea for February with a price increase of US$70-80/ton when compared with their January business, which was concluded at or slightly below their initial price hike targets, which stood US$80/ton above their December done deal levels. In Vietnam, a distributor reported lifting their prices to the local market by US$32/ton this week, while adding that they have already concluded some deals at their new price levels. Demand in Southeast Asia’s PVC market is generally not negatively affected during winter owing to the region’s warmer climate.