SEA, India receive increasing number of US PVC offers amid China-US trade war
Aug. 29, 2018
Players in Southeast Asia and India report that they have been receiving an increasing number of US PVC offers recently in the midst of escalating trade tensions between China and the US. According to them, US PVC is offering a very competitive edge across the regional markets.
A trader in India noted that US PVC offers emerged at very competitive levels this week. He commented, “It seems that US PVC suppliers are turning their attention to other export outlets as trade relations between China and the US are still delicate amid bilateral tariffs.”
The trader heard that a US producer’s PVC k67 offer to Indian buyers stands below the $900/ton CIF threshold. “Meanwhile, import k67 offers for South Korean, Thai and Ukrainian origins decreased by $10-20/ton from last week. Demand towards import PVC remains tepid, yet buyers might be interested in competitively-priced US origins,” he said.
A global trader offering US PVC in Asian markets reported that they reduced their prices by $10-20/ton on a weekly basis and opined, “We are seeking to divert our US PVC allocations from China to Southeast Asia nowadays. Chinese buyers are not showing interest in import transactions given escalating trade tensions while lower PVC futures on the Dalian Commodity Exchange have also pushed buyers to the sidelines in the country.”
The trader currently offers its US PVC k67 cargoes to Vietnam at very competitive levels when compared to the prevailing price levels for mainstream origins.
In Vietnam, a domestic producer rolled over its September PVC prices from August to the local market. A producer source commented, “We heard that some of our customers received US k67 offers at/below the $850/ton CIF, cash level this week. However, they are not willing to purchase from the US given long shipping durations.”