SINGAPORE (ICIS)--Producers offering March-shipping polyvinyl chloride (PVC) cargoes dropped their offers by $20/tonne following a subdued response to the initial increase in offers, market sources said on Friday.
A key northeast Asian producer was heard to have dropped its offers for March shipments to those seen in February, after its initial offers early in the week at an increase of $20/tonne at $1,100/tonne CFR (cost & freight) China/India/southeast Asia were met with weak response amid weak downstream demand, market sources said.
However, the lowered offers could not be confirmed with the producer.
According to market sources, the producer’s revised offers were heard at $1,080/tonne CFR China/India/southeast Asia for LC 90 days, with additional discounts of $10/tonne for LC at sight payment and purchases of 1,000 tonnes and above.
The producer’s offers to other markets dropped to $1,030/tonne FOB (free on board) Taiwan, down from $1,050/tonne FOB Taiwan early in the week.
A separate northeast Asian producer also dropped its offers to $1,080/tonne CFR China/India/southeast Asia, after initially offering at $1,100/tonne CFR China/India/southeast Asia on 18 February, a source close to the producer said.
Meanwhile, a third northeast Asian producer who offered March shipments early in the week at $1,100-1,110/tonne CFR China/India/southeast Asia was heard to have withdrawn all its offers following the reduction in prices from other makers, a company source said.
The producer has yet to finalise its revised offers for March shipments and is expected to announce its prices later in the day.
Demand in India was said to remain largely subdued despite the reduction in prices because of weak pipe demand in the downstream markets. The uncertainty on the revised structure of antidumping duties (ADDs), likely to be announced in early March, added to the hesitation among importers, market sources said.
End-user demand in the Chinese and southeast Asian markets also remained weak, and even the revised offers were met with subdued response as buying ideas remained capped at below $1,050/tonne CFR China/southeast Asia, sources said.
Additional reporting by Kite Chong