Initial PVC prices for November emerge lower in China, SE Asia

22-Oct-14

Players in China and Southeast Asia report that initial November prices for PVC have been announced with decreases in line with softer upstream costs and limited demand during the traditional slow season for the construction sector in the Northern Hemisphere. According to data from ChemOrbis Price Index, the latest reductions in PVC prices in Southeast Asia have brought average prices in the region to their lowest levels in almost a year. An agent of a Taiwanese producer reported that their supplier implemented a US$20/ton decrease on their November prices to both China and SEA while adding that the producer would most likely announce their prices to India next week following the Diwali holidays. A source at a second Taiwanese producer said that they lowered their November prices by US$20-30/ton to Southeast Asia while adding that they believe that initial November prices to India will also be given with reductions of $20/ton after the holidays. In Malaysia, two different converters reported receiving November offers from a Thai producer at prices US$20-25/ton below the seller’s most recent done deal levels for October. “We received lower prices for conventional PVC while the offers we received for Chinese acetylene based PVC are mostly stable on the week. We plan to wait a while longer before purchasing as we are comfortable with our stock levels,” one of the buyers reported. According to ChemOrbis, a Chinese producer expressed their sell ideas for November with decreases of US$10-30/ton from their October sell ideas. “We plan to make our official announcements later this week and will most likely try to offer at a competitive price relative to the offers given by a major Taiwanese producer,” a producer source reported. Another Chinese producer, whose offers stand at the low end of the overall offer range to Southeast Asia, said that they lowered their export prices by US$5/ton while also reducing their domestic prices by CNY100-200/ton (US$16-32/ton). “Most buyers are sticking to the sidelines in anticipation of seeing more attractive prices in the days ahead and we feel that this will keep prices under downward pressure,” a producer source stated.