Local PVC prices firm up in India
In Southeast Asia and India, local PVC prices in India moved higher after a domestic producer opened the month with a price hike of INR1500/ton ($22/ton). "A domestic producer raised their prices on the strength of improving demand and firmer upstream costs after crude oil prices went back above the $30/barrel threshold. However, buyers have been making fewer inquiries since crude prices dropped back to $30/bbl. We feel Iranian origins may become more prominent now that international sanctions are easing, but we hear that buyers who purchased Iranian PVC are facing some logistics problems for now," a distributor commented. Another distributor added, "Demand is limited as the outlook remains unclear. We believe that demand will improve after the holidays so long as oil prices remain above $30/bbl." In the import market, prices were largely steady at $690-770/ton to India and at $690-740/ton to SEA, both on a CIF, cash equivalent basis while offers for Chinese acetylene based PVC were quoted at $665-690/ton CIF SEA, cash.
Players are divided as to the post-holiday outlook for the PVC market, with most expectations centering on a stable to slightly firmer trend although some buyers still believe that prices have some room to come down. "Many players are predicting a firmer post-holiday trend based on past experience and the fact that energy costs recently regained some lost ground. However, the outlook could weaken again if oil prices drop back below the $30/barrel threshold," a player commented.