As contacted by SSESSMENTS.COM, a Japanese PVC producer talks about reasons to skip offering for the first half of May Shipment. According to the producer, the lockdown in India and some Southeast Asian countries caused uncertainties in the market. Buyers were very quiet, therefore, it is difficult to gauge market acceptance for May shipment offers. Even so, the producer opined that offers for ethylene-based PVC for May shipment should be around $600-700/ton-level to the Southeast Asia market and $700/ton-level to the India market. Changes by more than $100/ton were considered possible due to the low naphtha prices.
The producer also told SSESSMENTS.COM that Japan Prime Minister declared a state emergency covering Tokyo, Osaka and five other prefectures to curb the spread of the Coronavirus and ensure the medical care system stays intact. With the status of a state emergency, authorities in the seven prefectures are allowed to take emergency measures. However, declaring a state of emergency will not lead to a lockdown like those seen in some American and European countries.
Pertaining to the impact of the declaration on delivery, the producer informed SSESSMENTS.COM that there is no impact on the logistics so far. Therefore, the delivery of cargoes is not delayed.
