29 March 2013 07:25 [Source: ICIS news]
SINGAPORE (ICIS)--Producers of polyvinyl chloride (PVC) in the Gulf Cooperation Council (GCC) have dropped their offers for April cargoes by $90-100/tonne (€70-78/tonne) from March prices, market sources said on Friday.
This is due to a weak buying sentiment and a significant drop in import offers from Asia and the US, sources said.
Offers to the GCC markets from the regional maker for April shipments were at $1,060-1,070/tonne DEL (delivered) GCC, down from $1,150-1,170/tonne DEL GCC in March.
In the East Mediterranean (East Med) market of Jordan, April offers from the GCC producers were heard at $1,090/tonne DEL Jordan, and regional traders said that converters who regularly purchased GCC lots could purchase at as low as $1,070/tonne DEL Jordan.
Earlier this month, Asian and US cargoes shipping in April were offered to the GCC and East Med markets at $1,010-1,030/tonne CFR Middle East. Regional importers delayed their April purchases and chose to wait for the offers from the regional producers before booking April shipments.
Traders in the GCC and East Med markets view the regional offers as extremely competitive and expect multiple deals to be concluded at the offered prices.
According to market sources, the open credit terms for these regional cargoes, as compared to LC at sight terms for Asian lots are the key factor that could contribute to converters opting for purchases from the regional producers.
GCC producers’ offers are quoted on a DEL basis that includes all costs incurred in delivering the cargoes to the customer’s facility. Imported cargoes, on the other hand, are quoted on a CFR basis and are subject to an additional cost of around $50/tonne for port clearing, financing and land freight.
($1 = €0.78)
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