(chemorbis) -- Heading into December, new PVC offers and sell ideas started to emerge with increasesin the local markets in Southeast Asia. Regional producers either issued price hikes or expressed their hike targets for the new month giving the VCM shortage in the region as the main reason while relatively better demand provided some support for their targets.
Most Southeast Asian PVC producers are known to be non-integrated and have to procure their VCM supply from other sources. Many regional PVC makers expect to see higher upstream costs in December mainly due to limited supplies stemming from the disruption at Tosoh's complex.
Earlier in November, Japanese Tosoh shut its 550,000 tons/year No. 2 VCM plant after an explosion and decided to shut its No. 3 plant with a capacity of 400,000 tons/year as a precaution. The company's No. 1 plant with 260,000 tons/year capacity was already down for maintenance since the middle of October. The company has not announced a planned restart date for its plants although it may reportedly take around six months for the company to resume normal operations at its 550,000 tons/year No 2 VCM plant, while damage to the company's 400,000 tons/year No 3 plant was thought be less severe.
This week, an Indonesian PVC producer expressed their December sell idea with $50-70/ton increases compared to their November done deals after wrapping up their business for this month. The producer cited healthy demand in the local market as well as higher expected VMC costs in December as the main reasons behind their hikes. Another Indonesian producer reported concluding their November sales amidst satisfying demand.