The export market for PVC has been quiet in the USA this week. Latin American buyers have been especially slow due to Holy Week. They have taken days off there. Market players have been largely unsatisfied with overseas demand for the USA-origin PVC in H2 March. Customers have strong bearish sentiment. Market participants have been awaiting new prices and allocations for April shipment this week. Only Oxy has announced quotes for next month. The commodity has got $10/t more expensive and has been up for sale at $760/t FAS Houston. However, traders have refrained from purchasing the commodity at this price and negotiated instead. Most of them have been waiting until all producers announce prices before revising their quotes and offering the material to customers. ‘Current prices are unworkable; ideal FAS Houston quotes should be around $720—730/t to facilitate buying activity. If producers decide to roll over or increase the price, as Oxy is trying to do, traders will just lose money,’ a trader has commented. The lack of offers has been balanced with almost non-existent demand this week.

Traders have yet to set new PVC quotes as price negotiations are still ongoing. Potential buyers have been asking suppliers for much lower prices than those seen in the previous week.

Traders hope that producers will lower export PVC prices by at least $30—40/t for April dispatch to meet buyers’ bearish outlook and ensure better sales next month. Demand may pick up if the polymer depreciates. Price negotiations will be completed by the middle or end of next week. If producers maintain prices or raise them, demand is likely to remain low and some traders will lose money by selling the material at cost. Suppliers, though, have no optimism about buying interest in April and expect it to be lukewarm at best. However, warmer weather may have a positive impact on PVC consumption. Supply will be more than sufficient.