monthlyssessments-may-vietnam-pvc-prices

Local ethylene-based PVC offers in Vietnam continued to shift following crude oil prices and international trends. On the week commencing May 4, some converters stated that they have yet to receive fresh local PVC offers from local producers as the companies were still on the Reunification and Labor day holidays. However, by May 8, some producers have closed offers or sold out May delivery allocation between VND15,800,000-17,000,000/ton ($678-730/ton). In the following week, a local PVC producer managed to secure a deal at VND100,000/ton ($4/ton) lower from the initial offer level at VND16,900,000/ton ($725/ton) on cash, 30 days credit term and excluding 10% VAT. While on the week commencing May 18, SSESSMENTS.COM noted that there were no offers available as the local producers and traders in the country are waiting for the price announcement from the leading Taiwanese PVC producer. Market players opined that if the leading Taiwanese PVC producer adjusted up the offers, local PVC offers in Vietnam will also increase by VND500,000/ton ($21/ton) compared to April delivery. In the last week of May, as the crude oil and VCM prices were on an uptrend, some traders express firm sell idea for local ethylene-based PVC between VND17,500,000-18,000,000/ton($751-772/ton) on cash, FD Vietnam basis and excluding 10% VAT.

In the import market, SSESSMENTS.COM’s pricing database showed that June shipment offers for US PVC cargoes increased by $30/ton from May shipment. Deals for these cargoes were concluded at the same level to the initial offers at $630/ton on the week commencing May 11. While for other origin, deals for June shipment PVC offers from a Japanese producer concluded at the same level to the initial offers at $690/ton. As for Taiwanese cargoes, the leading Taiwanese PVC producer announced June shipment’s offers to the Southeast Asia market, including Vietnam. The offers increased by $40/ton compared to May shipment. In the final week of May, a local converter purchased Taiwanese ethylene-based PVC cargoes $10/ton lower than the initial offers or at $670/ton on the same payment and delivery term. All import offers were on LC at sight, CIF Vietnam Main Port basis.

As the government lifted the lockdown on April 30, market sentiment in Vietnam was gradually improving. Most businesses resumed operations from a month-long closure. However, despite the bullish market sentiment, no improvement was seen in the PVC market as the converters remain cautious in procuring materials and only purchase on a hand-to-mouth basis on the back of market uncertainties amid a challenging global economy over the pandemic crisis. Moreover, the rainy season in the country has dampened PVC demand even more. In contrast, a raincoat manufacturer stated that the company's end-product demand was healthy, as the rainy season is the high season for raincoat. On the supply front, no supply issues were reported to SSESSMENTS.COM.

Looking ahead, Vietnamese market players opined to SSESSMENTS.COM that PVC demand will remain weak in the upcoming months in line with slow finished product demand. However, demand for PVC-based rain apparel is expected to remain healthy as the rainy season usually lasts until October. In terms of prices, market players express a cloudy outlook for PVC prices as crude oil and feedstock price movements are unpredictable.

Range of local ethylene-based PVC offers between May 4 to May 8 on cash, FD Vietnam basis (excluding 10% VAT in all terms)

Origin	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton
Vietnam	Offer Given*	16,000,000-16,400,000	687-704
Vietnam	Offer Received	16,500,000	708
Vietnam	Purchased	16,500,000	708

Description: *May delivery offers

Range of import ethylene-based PVC offers between May 4 to May 8 on LC at sight, CIF Vietnam Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Japan	Buy Idea	570-580
Japan	Offer Received	640
Japan	Purchased	620
Thailand	Offer Received	650
USA	Offer Given	630
Vietnam	Sell Idea	720-770

Range of local ethylene-based PVC offers between May 11 to May 15 on cash, FD Vietnam basis (excluding 10% VAT in all terms)

Origin	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton	Payment Term
Vietnam	Buy Idea	16,000,000	687	Cash In Advance
Vietnam	Offer Received	16,000,000-16,540,000	687-710	Cash In Advance
Vietnam	Purchased	16,900,000	725	30 Days Credit Term
Vietnam	Sold	15,800,000-17,000,000	678-730	Cash In Advance

Range of import ethylene-based PVC offers between May 11 to May 15 on LC at sight, CIF Vietnam Main Port basis

Origin	Transaction Type	Offers (USD/ton)
USA	Offer Given	660
USA	Offer Received	630
USA	Purchased	630

Range of local ethylene-based PVC offers between May 18 to May 22 on cash, FD Vietnam basis (excluding 10% VAT in all terms)

Origin	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton
Vietnam	Buy Idea	16,700,000-16,800,000	717-721

Range of import ethylene-based PVC offers between May 18 to May 22 on LC at sight, CIF/CFR Vietnam Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Japan	Buy Idea	660
Japan	Offer Given	690*
Japan	Offer Received	680
Japan	Purchased	680
Japan	Sold	690*
Taiwan	Offer Given	680
Taiwan	Sell Idea	660
USA	Offer Given	650-660

Description: *June shipment

Range of local ethylene-based PVC offers between May 25 to May 29 on cash, FD Vietnam basis (excluding 10% VAT in all terms)

Origin	Transaction Type	Offers (VND/ton)	Equivalent in USD/ton
Vietnam	Bid Given	16,300,000	700
Vietnam	Buy Idea	17,000,000	730
Vietnam	Offer Given	17,200,000	738
Vietnam	Offer Received	16,600,000-17,600,000	712-755
Vietnam	Purchased	16,600,000	712
Vietnam	Sell Idea	17,500,000-18,000,000	751-773

Range of import ethylene-based PVC offers between May 25 to May 29 on LC at sight, CIF Vietnam Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Japan	Offer Given	680-690
Japan	Offer Received	680
Japan	Purchased	680
Japan	Sold	680
Taiwan	Offer Received	680
Taiwan	Purchased	670
Thailand	Offer Given	680-690
Thailand	Sold	680

MonthlySSESSMENTS: May Vietnam PVC Prices

Author: SSESSMENTS

MonthlySSESSMENTS: May Vietnam PVC Prices

Author: SSESSMENTS

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