September PVC prices stable to softer in SE Asia, spot VCM prices moving lower

06-Sep-11

In Southeast Asia, more local PVC prices for September were announced with rollovers to decreases this week led by a Vietnamese producer who pioneered lower September prices late last month, as per ChemOrbis. Weaker PVC prices in the region have also put increasing downward pressure on VCM prices for September, as they fall by around US$50/ton from their initial September offer levels last week. After a Vietnamese producer announced initial September domestic prices before the holidays with decreases of US$10/ton from August, more producers have announced September prices with either rollovers or decreases from their August offer levels. A Thai producer announced initial September prices with decreases of THB500-1000/ton (US$17-33/ton) when compared with late August levels, as domestic demand continues to be normal. In the Philippines, a producer announced initial September prices with rollovers from late August offer levels, hopeful that demand might begin to pick up in October at the onset of preparations for the Chinese New Year holidays. PVC demand is said to be largely stable in the Philippines, although most converters remain hesitant to purchase in large quantities for now. Import PVC prices have also moved lower in Southeast Asia and India at the start of the month, with most September export business to the region concluded by a Thai US$20/ton below initial offer levels for the month. The producer predicted that prices would remain close to their current levels over the near term. Traders in India reported conclusion of deals for both American and Taiwanese origins at prices US$10-20/ton below their suppliers' initial offer levels this week. Indian players described demand inside the country as normal at the start of September, with hopes that demand will strengthen towards the end of the year. Upstream, spot VCM prices moved lower over the past week in line with softening PVC prices in the region and generally lackluster demand. Japanese VCM producers lowered September spot prices by US$50/ton from their initial offer levels for the month and US$20/ton from their August done deal levels after a Japanese producer reported to have concluded a deal with a buyer in China at similar discount.