Taiwan’s Formosa, S Korea’s LG Chem up India PVC offers by $10/t

09 December 2011 07:11  [Source: ICIS news]

SINGAPORE (ICIS)--Two major northeast Asian polyvinyl chloride (PVC) producers have revised up their December/ January offers into India by $10/tonne (€7.5/tonne) this week, on the back of tight supply, as well as relatively stable demand, market sources said on Friday.

Taiwan’s Formosa has raised its January offers early this week to $960/tonne CFR (cost and freight) India.

“The impact of Tosoh explosion had filtered through the PVC market and at the same time rising costs on higher energy and ethylene prices are also becoming a concern,” a company source said.

In mid-November, Japan’s Tosoh Corp had an explosion at its 550,000 tonne/year vinyl chloride monomer (VCM) plant No 2 plant at Nanyo in Yamagata prefecture. VCM is the feedstock for PVC.

South Korea’s LG Chem also announced its latest PVC offer into the Indian market at $960/tonne CFR India for limited December shipment, $10/tonne higher than its initial offer.

“Demand is good so far and LG Chem has no inventory pressures at the moment,” said a source close to the company.

A number of traders decided to stay on the sidelines despite further expectations of price hikes in the coming week because of tight supply.

“The spot market outlook is very uncertain at the moment. Although regional supply is tight, we do expect more imports to arrive this month and it will take the market a while to soak up [the inventory],” said an Indian trader.

($1 = €0.75)

By: Yu Guo
+65 6780 4359

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