A major Taiwanese producer announced new July PVC prices yesterday with increases to both China and India as per the pricing service of ChemOrbis. Players reported that the new PVC prices are $30-40/ton above the June done deal level for Asian origins offered to China. Prices to India were reported to be $10-30/ton above the most recent deals for Taiwanese cargoes.
Some players pointed to higher VCM prices as a background for the higher PVC offers for next month. The notional market level for spot VCM has risen in recent weeks as players had been anticipating that PVC prices would be raised.
A trader in Beijing commented on the new PVC prices saying, “We received higher offers and we believe they are due to VCM costs, but we believe the recent increases on PVC are too high for buyers to accept.”
A trader in Shangai said that he had raised his PVC offers following the announcement from Taiwan and he plans to make some purchases at the new levels in order to maintain stocks to meet their customers’ needs.
According to ChemOrbis, in India, a converter reported receiving higher Taiwanese PVC prices but said, “We find the new prices we received to be too high to accept and we do not think that we will be able to conclude many deals for our end products at these higher raw material costs.”