November PVC concluded deals in China near initial offer levels

21-Oct-10

In line with sellers’ earlier hike targets, November PVC offers were announced with monthly increases to China this week, as per Chemorbis. A major Taiwanese producer is now seeking a ten dollar increase from October offer levels for November allocation, while new offers from other overseas producers are standing US$10-30/ton above their most recent done deals for October. Sellers justify higher prices by pointing to low inventory levels and satisfactory demand from buyers. A Taiwanese producer reported lack of any sales pressure at the moment while holding normal inventory levels. At the start of the week, sellers reported to be receiving a good number of inquiries from their customers. These comments were followed by a number of done deals later in the week, with cargoes from Taiwan, Japan and US being sold at or close to the initial price levels from sellers, who were confident that their new offer levels would find acceptance on the buyers’ side. A trader sold US cargoes with increases of US$10-20/ton from the month of October, saying that they are achieving satisfactory sales for the coming month due to the improved demand from downstream markets. Japanese cargoes were also sold with similar increases from the October level, with another trader stating that they are planning to maintain their prices at higher levels due to lower than normal stock levels at their supplier. A Taiwanese producer also claimed to have passed a US$10/ton increase on their done deals for November. In Southeast Asian markets, price hikes are also surfacing, although these increases are yet to pass on import done deals so far. A major Thai producer issued larger price hikes of US$30-40/ton over their done deals for cargoes for October shipment to Southeast Asia this week. A company source justified their prices by pointing to higher VCM costs, which gained US$10/ton on the week in Asia. Export offers out of Thailand and Vietnam were also reported US$30-40/ton higher, although a Vietnamese producer acknowledged that there is not much demand at these levels for now.