An Indonesian PVC producer reported to SSESSMENTS.COM that the company will follow the pricing strategies from the other local producers for August delivery, which is slightly different with global price trend. For the week commencing July 27, the producer stated that the company is no longer offering for July delivery and currently focusing on the delivery process. While for August delivery, the offers will be released by the upcoming week and following the pricing strategies from other local PVC producers. Although August delivery offers have not been decided yet, market talks have it that the leading Indonesian PVC producer and another local producer plan to increase the offers by $20/ton from July delivery’s level. The increases planned for the domestic market will be lower than the export market considering not all industry sectors in Indonesia are moving in a positive direction.
Additionally, SSESSMENTS.COM was informed that the producer is still unsure about the sustainability of the current demand. From the producer’s end, the demand in July is slightly lower around 10% compared to the demand in June. The producer explained that satisfactory demand is only recorded from the cables retail and pipe sector while from the power cable and automotive sector, the demand is sluggish. Other than that, the starting date of the government project is still unclear as the budget has not been released yet. On the supply front, the producer's inventory is still considered high stemming from the quiet market in May. However, the chance for the price to decrease is small as buoyed by the high VCM prices.
