An Indonesian PVC producer opined to SSESSMENTS.COM that the adjustment on July delivery offers would receive positive response despite the increasing number of coronavirus cases. Following the international price trend, the producer plans to increase July delivery offers by $90/ton from June. Although the offers will increase significantly, market responses expected to be satisfactory as supported by the limited allocation for July shipment from a Thai producer and also rumours regarding PVC plant of the leading Indonesian PVC producer that have been experiencing some problems for the last two months. The producer added that some customers already contacted to discuss the purchasing quantity for July delivery. Moreover, more market activities amid “new normal” policy are predicted to lead to better sentiment, as such, the demand in July is expected to increase to 70-80%. Other than that, the producer noted that the sales in June has reached 60% of the monthly average under normal market condition.
The producer stated that the company’s office remained close while the plant has been running since the beginning of June, currently operating at 80-85% from the normal capacity. While for the outlook, the producer opined to SSESSMENTS.COM that there is room for August shipment offers to increase between $10-20/ton from July shipment as supported by the firm VCM and crude oil prices coupled with the possibility for reduced allocation from the leading Taiwanese PVC producer due to upcoming turnaround maintenance at their plants. Although the number of new COVID-19 cases in Indonesia continues to increase, the source predicts that the “new normal” policy imposed by the government will lessen the coronavirus impact as players are gaining confidence to continue the economic activity. As such, the demand is expected to remain bullish until the end of the year.
