12 December 2007 09:57 [Source: ICIS news]
SINGAPORE (ICIS news)--Three more Asian producers have sharply raised their January offers for polyvinyl chloride (PVC) shipments to China, following the initial $30-40/tonne hike in offers by Taiwan’s Formosa Plastics Corp (FPC) earlier this week, the producers said on Wednesday.
Thai Plastic and Chemicals offered January cargoes at $990/tonne CFR (cost and freight) China, the same level as FPC’s offer, while Japanese PVC maker Taiyo Vinyl Corp’s offer was much higher at $1,020/tonne CFR China.
A second Thai producer, Vinythai, said it has offered cargoes for January at $990-1,000/tonne CFR China.
Most producers had settled December business at $950-970/tonne CFR China.
The producers said they were in negotiations with Chinese customers and were hopeful of achieving their price targets.
Producers expected January demand to be stronger than in previous years.
“The rising trend in feedstock costs cannot but translate into higher PVC prices. I think buyers realise this and will stock up even before Lunar New Year, unlike the trend in earlier years,“ the Taiyo Vinyl source said.
Tight supply in the first quarter of next year due to turnarounds could also boost buying sentiment, a Vinythai source said.
However, a Chinese buyer said there was little buying interest above $970-980/tonne.
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