US PVC offered competitive edge in Asia, Europe
Sept. 11, 2018
Several PVC players in Asia and Europe reported last week that they continued to receive an increasing number of American PVC offers at very competitive levels standing below the low end of the overall market ranges.
In China’s import PVC market, competitive US PVC offers attracted buyers’ attention last week since they were around $100/ton lower than offers for Asian origins. Traders concurred that the influx of competitively-priced US cargoes contributed to the weak state of the market, along with other factors including lower futures prices and still-tepid demand amidst the depreciating yuan.
The fact that China removed US PVC from an additional tariff list was also cited as a reason for increased attention for this origin.
Players in Southeast Asia confirmed that US PVC continued to show up at very attractive levels, particularly on CIF Vietnam basis. When compared to offers for Chinese and Taiwanese origins, American PVC offered almost $100/ton lower price levels in a few cases.
“Sentiment remains weak given further depreciation of regional currencies while competitive offers for US PVC continue to weigh on the market,” a Vietnamese trader commented.
In India, US PVC offers also stood quite below the overall price range mostly including Taiwanese and South Korean origins last week. A few sellers noted, “The market is facing downward pressure from the weaker rupee against the USD as well as competitively-priced US PVC. However, buyers are not that interested in US offers due to antidumping duties and long shipping times.”
In Europe’s local PVC market, initial September offers were announced mostly stable or slightly higher from August in line with the stable outcome of the ethylene contract. In Italy and Northwest Europe, meanwhile, US PVC k70 was dealt 50-60/ton below the overall price range last week. As for k58, US cargoes offered 110/ton lower levels when compared to the local market.
“Ample supplies and attractive price levels for US PVC might encourage buyers to seek slight discounts in their September deals,” some players in Europe opined. Meanwhile, others argued that export PVC prices from the US have been slightly increased for new shipments. However it is yet to be seen whether these higher levels will be found workable.