Taiwan’s FPC cuts July PVC offers by $70-90/tonne on weak demand
19 June 2012 05:32 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>Taiwan’s Formosa Plastics Corp (FPC) has lowered its July benchmark offers for polyvinyl chloride (PVC) by $70-90/tonne (€55-71/tonne) from its final June offers, in view of the prevailing weak demand, a company source said on Tuesday.
Offers for July shipments are down by $70/tonne at $870/tonne CFR (cost & freight) CMP (China Main Port)/southeast (SE) Asia, the source said.
For July parcels to India, offers fell by $90/tonne to $890/tonne CFR India, according to the source.
Meanwhile, the producer’s July export offers to its deep-sea markets, such as the Middle East and Africa, are at $820/tonne FOB (free on board) Taiwan, down by $80/tonne from its last June export offers, the source added.
A quantity discount of $10/tonne is applicable for volumes of 500 tonnes to China, India, and deep-sea markets, while a $20/tonne discount is applicable for volumes of 1,000 tonnes to India and deep-sea markets, industry sources said.
The producer had to reduce its offers to reflect the current weak market situation, the source said.
However, prices are likely to bottom out soon amid positive indications relating to the global economy as well as stabilising crude oil and ethylene prices, according to the source.
($1 = €0.79)By: Feliana Widjaja
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