22 April 2013 15:27 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) has reduced its May offers for polyvinyl chloride (PVC) to China, India and other markets for the third consecutive month following weak buying sentiment, a source close to the company said on Monday.
The PVC maker offered May-loading cargoes to China at $970/tonne CIF (cost, insurance & freight) China, the source said.
This $40-50/tonne (€31-39/tonne) price reduction for May cargoes comes after a $50/tonne drop in the company's offers to Asian and other markets for April shipments.
FPC's May offers to India are at $980/tonne CIF India, while those to other markets are at $930/tonne FOB Taiwan, the source said.
The company had also, in early March, brought its prices for March shipments down by $30/tonne, after initial offers of $1,090/tonne CIF China and $1,100/tonne CIF India received muted response from buyers across the markets.
When asked about the discount structure, the source said that it was same as that which is usually offered every month.
In March, the PVC maker offered a quantity discount of $10/tonne for purchase of volumes more than 500 tonnes to China and more than 1,000 tonnes to the India market.
According to the source, the total volume offered for export in May is also similar to that offered by the maker every month, around 65,000-70,000 tonnes.
The breakdown of cargo volumes has not been determined, the source said. The company would look to sell more in markets with higher resin demand, the source added.
($1 = €0.77)
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