PVC prices dip in India

PVC prices in India have declined over the past week as demand remains sluggish owing to the monsoon season along with softening upstream costs and bearish sentiment in other global markets, as per ChemOrbis. The premium carried by Indian PVC prices over the nearby Southeast Asian market narrowed after remaining at or close to a yearly high throughout most of June and July, according to data from ChemOrbis Price Index. A major Taiwanese producer pioneered September prices decreases to Asia, lowering their prices by US$10-20/ton to India, China and Southeast Asia owing to softer upstream costs along with lackluster demand. Several buyers in India report that they have already received offers for this origin with additional discounts. A converter commented, “We are only planning to purchase around half of our normal allocation this month as we think that further decreases are possible.” A trader who received offers for Taiwanese, Thai and South Korean PVC stated, “Demand is down by a significant amount owing to the monsoon season. We have not purchased any import cargoes yet this month as we are considering doing some business in the local market instead. We find the current import prices to be a bit high and would try to negotiate for discounts if we ultimately decide to source import cargoes.” A converter manufacturing PVC film reported receiving offers for Taiwanese PVC with US$20-30/ton decreases from last month. “Demand for our end products is not strong these days, so we will try to negotiate some additional discounts before purchasing. Our local supplier is maintaining their prices, but we believe that we can negotiate a discount of around INR1000/ton (US$16/ton) if we place a firm bid,” the buyer stated. A trader offering South Korean and Chinese acetylene based PVC to the market added, “Domestic suppliers are trying to regain market share and therefore looking to give competitive prices. We believe that the monsoon season will last until late September and this is likely to keep demand depressed for the coming month.” Locally-held PVC prices were down INR1000-1500/ton (US$16-25/ton) week over week. According to ChemOrbis, PVC prices are also moving lower to several other global markets as the weakening upstream chain and disappointing demand are pushing sellers to give discounts. In Egypt, a trader reported lowering their offers for American PVC by US$35-45/ton. “Several US suppliers are competing with each other for export business in Egypt and this is giving buyers room to negotiate discounts,” the trader stated. PVC prices were mostly stable in Turkey week over week, but buyers are pushing for discounts given reduced upstream costs and sluggish demand. “Political tensions in nearby countries such as Iraq and Ukraine are hurting export demand and this is giving buyers some room to ask for discounts on their PVC deals,” a player commented.