23 August 2013 09:36 [Source: ICB]
Offers similar to initial August offers that were later revised down by Taiwanese producer
Taiwan's Formosa Plastics Corp (FPC) hiked on 13 August its official offers for September-lifting polyvinyl chloride cargoes by $30/tonne (€23/tonne) from August prices, a source at the company said.
Prices now stand at $1,050/tonne CFR (cost and freight) China, at $1,050/tonne CFR SE (southeast) Asia and at $1,070/tonne CFR India, the source said.
A usual discount of $10/tonne for letters of credit (L/C) at sight payments and bulk purchases of over 1,000 tonnes applies on these prices, the source said.
Volumes offered for September-loading were "a little less than usual", the source said.
Some market participants said that FPC's available volumes were heard to be around 50,000 tonnes.
The September PVC prices were similar to FPC's initial offers made on 17 July for August cargoes. But the company revised down its August offers a few days later amid a lukewarm response from buyers to higher offers, the source said.
Expectations of improved demand following the Ramadan holidays in the Middle East and in some parts of southeast Asia, and the end of the monsoon season in India, helped push prices higher, the source said.
Tightened spot supply brought about by plant turnarounds in northeast Asia, along with lowered operating rates - prompted by high cost of electricity and feedstock ethylene - also exerted upward pressure on offer levels, the source said.
Most regional suppliers deem FPC's price hike for September cargoes as "well-justified" and "reasonable" considering the current production costs.
Additional reporting by Stephanie Zhang and Becky Peng in Singapore
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