News Code : 45098

Formosa USA issues PVC force majeure. ||CFR China hits 10-months high.

Petrotahlil - Asian PVC rose $20/mt week on week Aug. 19 with CFR China price hitting a 10-month high, fueled by global supply crunch concerns after Formosa USA issued a force majeure.

Formosa USA issued a force majeure on PVC in the US due to upstream plant problems.

Market sources in Asia said the news  

prompted concerns that supplies would tighten further.

Amid this development, buyers actively sought spot cargoes.

In India, traders said there were cargoes from Japan sold in India at prices ranging between $1,010/mt and $1,020/mt CFR India, at 0.7% import duty.

After normalizing the import duty, the landed cost works out to $915-$925/mt.

Some market sources said ex-Taiwan cargoes were also traded at $960/mt CFR India, but trading sources said the quantity was limited.

Some market sources said firmer market in Asia would likely prompt exports from China.

An offer level was heard at $860/mt FOB China in the week of Aug. 16. Chinese suppliers were absent from exporting this year due to better domestic prices.

Looking forward, market sources said fresh offers for October would be increased again.

For September, offers were concluded around $30/mt higher than August.

In domestic market in India, PVC prices in New Delhi rose to Rupees 85-87/kg in the week of Aug. 16 from Rupees 82-83/kg a week ago.

Market sources said PVC prices in New Delhi was attractive for sellers and traders have been moving imported PVC materials from Chennai to Delhi.

As a result of firmer PVC, Asian PVC-VCM spread rose to a four-month high of $195/mt on Aug. 19, according to Platts data.

Asian PVC Weekly Rationale

CFR China PVC rose $20/mt week on week to be assessed at $860/mt on Aug. 19 with a tradeable value reported in the range of $840/mt and $860/mt CFR China. The assessment on Aug. 19 was on the higher end of the trading value, reflecting tight supplies.

CFR Southeast Asia price was also up $20/mt to $870/mt during the same period in line with the firmer China market.

CFR India PVC jumped $20/mt from the previous week to be assessed at $920/mt on Aug. 19 after deals were reported in the range of $915-$925/mt CFR India.

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