11 February 2010 11:17 [Source: ICIS news]
SINGAPORE (ICIS news)--Benchmark monthly offers for polyvinyl chloride (PVC) imports into the key Chinese market are likely to be announced only after the Lunar New Year holiday, at least a week later than usual, traders and producers said on Thursday.
Offers are usually announced in the second week of each month. But with the Lunar New Year holiday taking place across Asia next week, producers in the region have decided to postpone their offer announcements for March-arrival cargoes, market players said.
“Many of the converters in China have already started their holidays. It makes no sense to offer this week, since negotiations will be delayed by the holidays anyway,” said a major PVC producer in Asia.
With the Lunar New Year holiday lasting a week in China, negotiations over March-arrival cargoes could last well into the first or second week of next month, some traders said.
A key Taiwanese producer had earlier offered February-arrival cargoes at $1,020/tonne (€745/tonne) CFR (cost and freight) CMP (China Main Port) and sold 15,000-20,000 tonnes at similar levels.
It subsequently revised its February offer upward by $30/tonne, citing high feedstock costs, but buying response to the new offer was subdued.
Suppliers said they are confident that March cargoes would, at a minimum, be offered at $1,050/tonne CFR CMP, as feedstock prices remained relatively high.
($1 = €0.73)
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