As SSESSMENTS.COM noted, a Thai converter placed bids far below the initial offer level for local PVC cargoes despite the notable downward price adjustments made by the producers. On May 5, a converter received fresh offers from two Thai PVC producers with a notable reduction of THB3,000/ton ($92/ton) on a monthly comparison. As the converter was considering the offers were quite attractive, they planned to stock up as much as 1,000 tons; 500 tons from each producer. Since the converter is buying in a big quantity, they decided to submit bids at THB22,000/ton ($677/ton) to both producers, or THB2,500/ton ($77/ton) lower than the initial offer levels. However, the bids were shrugged off by suppliers citing the producers are only willing to give a discount of THB1,000/ton ($30/ton) for a big volume of purchases of 500 tons and above. At the time of publication, the converter has yet to conclude any deals with both producers.
Demand-wise, SSESSMENTS.COM was told that the converter’s sales this week is still more than 30% lower compared to the same period last year. At the moment, the prominent reason that steered the converter to buy in a big volume is because of the low prices. Hence, it is the right time to purchase in bulk. Moreover, the converter also projected that demand for end-products will only improve around June when the curfew is expected to be more loosen up. By that time, the department stores are allowed to reopen and more public activities are permitted. Still, demand is predicted to remain subdued for the entire May.
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