Since the current offers obtain unsatisfactory responses from local buyers, a Vietnamese PVC producer decided to divert their August allocation to the export market. As contacted by SSESSMENTS.COM on July 27, the Vietnamese PVC producer reportedly has released August delivery offers with an increase of VND500,000/ton ($21/ton) compared to July. The increment was made in order to keep up with market trends. Unfortunately, local buyers’ responses toward the current offers are not too positive and the number of inquiries is decreasing from last month. The producer cited that the weakened demand was associated with the slow sales for finished products coupled with the high inventory level on converters’ end following the arrival of import cargoes.
As such, the producer decided to reallocate their cargoes to the export market. Previously, the producer usually received lots of inquiries from Indian buyers but never be able to fulfil their needs since their supply is not sufficient. Yet this time, since demand in the domestic market is sluggish, the producer is able to meet buyers’ needs in the India market and already started to give offers a week earlier; the price remains valid for this week. The producer added that the deals could be concluded lower from the initial offer level depending on the volume of purchases. However, no further details regarding the discount as there are still many offers under negotiation. So far, the feedback from Indian buyers is quite good, as told to SSESSMENTS.COM.
On the production sector, the producer initially planned to reduce production rate, SSESSMENTS.COM was told. However, since the company has no maintenance schedule yet and the export sales are quite promising; the plan is adjourned and the producer’s production rate is currently still at full capacity. In terms of outlook, the producer believes that demand will remain sluggish at least until August and will likely improve once the rainy season is over.
