30 June 2011 21:45 [Source: ICIS news]
HOUSTON (ICIS)--US polyvinyl chloride (PVC) export prices could hit bottom and begin to stabilise by August, market participants said on Thursday.
Export buying activity began to erode in late May, when PVC export prices from the US were in the $1,200s/tonne range FOB USG, and offers were heard as high as $1,300/tonne FOB USG.
Sources said many global buyers were anxious about supply and quickly sought material following the Japanese earthquake and tsunami in March, sending prices upward.
One trader said the price movement was based on market sentiment, not on any supply-demand fundamental changes.
“I think the bottom is very shallow,” the source said.
For last next few weeks, demand from China has been particularly weak as buyers awaited prices to go lower.
The trader said India’s appetite for PVC will resume in August at the end of its monsoon season, and the rest of the global market will follow China’s lead.
Another market participant said the Asian market tends to swing from highs to lows and anticipated seeing a rebound in demand in August.
“Asia is very elastic in supply and demand, typically,” the source, a major PVC buyer, said.
($1 = €0.69)
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