01 March 2013 12:39 [Source: ICIS news]
SINGAPORE (ICIS)--Polyvinyl chloride (PVC) producers in south Asia have raised their offers for March shipments following tightness in supply of feedstock vinyl chloride monomer (VCM), market sources said on Friday.
Regional producers in India increased their prices for March shipments by Indian rupees (Rs) 1.50/kg ($27.59/tonne) to Rs65.5/kg ($1,204.71/tonne) EXW (ex-works) for March-shipping cargoes.
The equivalent import parity for the revised list price stood at around $1,100/tonne CFR (cost and freight) India, market sources said.
In the neighbouring Pakistan, the major PVC producer, too, raised its offer prices for March cargoes by Pakistan rupees (PRs) 1.70/lb ($38.18/tonne) EXW to PRs66.10/lb ($1,483.86/tonne) EXW, with an equivalent import parity of $1,120/tonne CFR Pakistan, sources said.
Earlier in February, PVC prices in south Asian markets rose by $30/tonne to $1,080-1,100/tonne CFR as northeast Asian producers hiked their offers for March shipments owing to higher VCM costs.
These prices found limited response from buyers, which strongly resisted the price increase. Cheaper carbide-based PVC cargoes from China offered at $1,020-1,035/tonne CFR India additionally weighed on the buying sentiment for ethylene-based PVC cargoes, especially in the northern part of the country, that further dampened sentiment for ethylene-based PVC, the source added.
Asian producers selling to India said they were optimistic of better demand owing to tight supply in March, and preferred to hold on to their offers for March shipments at $1,100/tonne CFR India that is presently drawing lukewarm response from chief converters and traders in the region.
PVC resin demand in India is said to be making a slower-than-expected recovery amid a prolonged winter and a lack of rainfall in the western parts of the country that has impacted the offtake of PVC pipes.
However, demand is likely to see a boost in March onwards because of the supply tightness brought about by the turnarounds, according to market sources. March also marks the end of the fiscal year 2012-13, a traditional purchase peak season for PVC resin and pipes for agriculture and construction projects.
($1 = Rs54.37, $1 = PRs98.21)
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