Taiwan’s Formosa Plastics Corp hikes July PVC offers to India

10 June 2014 07:36 Source:ICIS News

SINGAPORE--Taiwan’s Formosa Plastics Corp (FPC) has announced its polyvinyl chloride (PVC) offers for July shipment to India at $30/tonne higher than June prices, a source close to the company said on Tuesday.

July PVC offers are announced at $1,120-1,130/tonne CFR (cost & freight) India, up from $1,090-1,100/tonne CFR India for June lots, because of buoyant import demand for the polymer in recent weeks.

Purchases on a LC (letter of credit) 90 days basis are said to have been offered at $1,130/tonne CFR India, while LC-at-sight purchases are $10/tonne lower.

FPC did not offer discounts for bulk purchases for July shipment to India, the source said.

The producer’s offers to China and southeast (SE) Asia are announced at $1,070/tonne CFR China/SE Asia, up by $10/tonne from June prices, because of limited demand from these two markets.

Discounts of $10/tonne are offered for purchases of 500 tonnes and above to both markets, the source said.

FPC is also offering July shipments to other markets at $1,020/tonne FOB (free on board) Taiwan, up by $10/tonne from the previous month, and discounts of $10/tonne would be given for purchases of 1,000 tonnes and above.

However, the producer’s allocation to these other markets remains largely limited owing to good demand and netback from India, according to the source.

FPC has offered a total of 55,000 tonnes of PVC for export in July, stable from June levels, the source said.

With additional reporting from Stephanie Zhang

By Veena Pathare & Kite Chong