PVC players voice weak January expectations in Asia
Players in China attributed their weak expectations regarding offers from the producer to lackluster demand amidst weaker crude oil, naphtha and VCM costs. At the same time, firmer ethylene, which defies all of these bearish factors, may limit any decrease amounts on new prices.
Source: ChemOrbis Price Wizard
No substantial recovery in the PVC market is likely until after Chinese New Year Holidays that will take place in February, according to players. A trader opined, “Demand is really weak since buyers are sourcing only small volumes considering their basic requirements. Falling crude oil prices, the US FED’s interest rate hike after years, slowing Chinese economy and the depreciation of the yuan currency are all casting a shadow on the sentiment. We hope the market gives signals of a rebound after holidays depending on the direction of the energy complex at that time.”
In India, a manufacturer expects to receive fresh PVC prices from a Taiwanese producer with around $50/ton drops for the coming month. “We feel that spot ethylene prices have room to come down further taking low naphtha and crude oil prices into account,” the buyer argued.
A pipe producer also expects to hear lower fresh prices saying, “The announcement from the producer may be delayed a bit while the seller should adjust their PVC offers down for January. Overall, demand in India has not picked up much so far even though floods in the southern region ended already.” Another buyer expects a South Korean producer to return with more competitive prices once the Taiwanese major reveals their new offers.
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