A Japanese PVC producer contacted by SSESSMENTS.COM stated that is tough to decide the pricing for May shipment as the uncertainties pile up. As of recent, the producer claimed that there are no cancellations emails from buyers for April shipment. But indeed, sales to India market is slowing down due to the total lockdown. Most of the customers are shutting down their factories. Regarding the adjustment of customs duty for Japanese origin to India, the producer explained that with effect from April 1, 2020, it will be 0.7%, decreased by 0.7% from last year. By April 1, 2021, it will be cut by another 0.7%, leaving zero customs duty as a result.
While to Vietnam market, the demand is still steady so far. Seems like the market has not severely affected by Coronavirus outbreak. Market talks have it that Japanese PVC cargoes sold at $760/ton on LC at sight, CIF Vietnam main port basis. In this case, Taiwanese cargoes have to be lower than that to make it attractive. “If the leading Taiwanese PVC producer wants to move the unsold materials to Vietnam market, the offers should be at least 5% lower than $760/ton,” the producer commented to SSESSMENTS.COM.
Looking ahead, the source stated that it will be very tough to decide the offers for May shipment as there are a lot of uncertainties in the market. At the moment, it is better to monitor the market closely, as stated to SSESSMENTS.COM.
