PVC downturn gains pace in Asia on Taiwanese major’s larger-than expected drop
Oct. 17, 2018
Asian PVC players have received November offers from a major Taiwanese producer with decreases of $30/ton in China and $60/ton in India. Although the softer pricing did not come as a surprise, the decrease amount exceeded the initial expectations.
The major producer’s lower offers were mainly attributed to disappointing post-monsoon demand in India. Retreating spot ethylene prices along with tumbling local Asian currencies also contributed to the latest decline.
Following the major producer’s decision to cut its new offers, the weekly average of China’s import PVC market has hit a more-than-two-year low , according to ChemOrbis Price Index. The weekly average of India’s import PVC market has also slipped to its lowest levels since November 2017, data also suggest.
A South Korean producer immediately followed the footsteps of the major producer and lowered its November PVC prices to India by $40/ton .
A buyer commented, “We are surprised by the major producer’s decrease amount for November as we were expecting to see $10-20/ton of decreases in the first place. We prefer to wait and see if other suppliers will apply a similar pricing policy.”