Asian PVC producers are likely to offer their June-arrival cargoes at prices steady or lower from May amid decreasing feedstock costs and sluggish demand, market sources said Monday.
"The demand is not picking up and [feedstock] ethylene price is falling very fast. No one will buy the cargoes if prices are not lowered," said a China-based source Monday.
Asia's largest producer, Formosa Plastics will announce its offer price for June arrival cargoes next week. It had offered and settled its May-arrival cargoes at $1,060/mt CFR China, $1,100/mt CFR India and $1,070/mt CFR Southeast Asia on April 17, up $20-30/mt from April settlement prices.
China imports PVC to produce goods for export to the US and Europe. But following the economic crisis, exports have been hampered, weakening demand for PVC.
"The orders from US and Europe for PVC finished products this year is much lower compared with last year," said a China-based source.
Meanwhile, feedstock ethylene prices have dropped, falling $40/mt week on week to $1,311/mt CFR Northeast Asia Friday.
PVC import prices have been rising since November on higher feedstock ethylene costs. Asian PVC prices rose $167.90/mt or 19% to average $1,047.50/mt CFR Far East Asia in April, from $879.60/mt CFR Far East Asia in November, Platts data showed.
