Better PVC demand reported in India, Italy, Egypt

Players in India, Italy and Egypt report seeing stronger PVC demand this week, which has led to firmer sentiment vis a vis August PVC pricing. Buyers are said to be looking to secure material ahead of upcoming holidays at the prevailing July prices, which many players feel will prove to be the bottom level of the recent downward trend in global PVC prices, as per ChemOrbis. In India, a trader offering on behalf of a South Korean producer stated that they sold out 12,000-15,000 tons of material this week after announcing their new August prices with increases. “We have implemented a US$15/ton increase on the remainder of our August allocation, which comes to around 7,000-10,000 tons. Demand has been better recently while supply is limited, although we are not sure if this trend will continue into the next month given the upcoming Ramadan holidays,” the trader stated. Another Indian trader added, “We have sold out our allocations of Taiwanese PVC as demand has been good this month. Our supplier in Taiwan told us that they do not have any additional material to offer to India for now.” A third trader added, “Demand has been healthy this month owing to the delayed start of the monsoon season. However, we are not optimistic about the demand outlook for the coming month as the monsoon season should get underway while the Ramadan holidays will also dampen demand.” Players in Italy also report that they are seeing improved PVC demand in July. A source at a West European producer told ChemOrbis, “Buyers are more active in the market this month as they are concerned that they will have to pay higher prices in the months ahead. As we also expect to see higher prices in the coming months, we are trying to limit our sales quantities for now.” A converter manufacturing PVC pipes commented, “We are looking to purchase more material this month as we expect to see higher prices in the months ahead. Most suppliers claim to have limited availability these days and are accordingly less willing to discuss discounts for large volume purchases.” Another converter active in the medical sector stated, “We are purchasing more material this month as we are trying to speed up our production ahead of the August holidays to ensure smooth deliveries to our customers over the holiday period.” In Egypt, PVC demand has also firmed up ahead of the Ramadan holidays in August. “Demand has improved recently and we are looking to purchase some material during the Ramadan month to maintain steady production at our plant,” a PVC pipe manufacturer reported. Another PVC pipe converter added, “We are seeing healthy demand these days. Although we think that demand will slow down in August because of Ramadan, we are optimistic about the demand outlook for September.” A source from Egyptian producer EPC commented, “We lifted our prices this week in accordance with stronger upstream costs. We are seeing better demand from the local market and are feeling optimistic about our prospects.”