Local ethylene-based PVC offers on 90 days credit terms, FD Philippines basis (including 12% VAT in PHP terms, all equivalent in USD excluding VAT)
As stated to SSESSMENTS.COM, July delivery offers from a Philippines PVC producer received positive response despite the upward adjustment as buyers are aware of the current market trend. A Philippines PVC producer has announced its July delivery offers after managed to sell all of June delivery allocations announced last week. The producer’s offers for July delivery increased by PHP3,000/ton ($60/ton) from June delivery’s level on the back of firmer monomer prices, available between PHP51,000-52,000/ton ($1,1018-1,039/ton) on 90 days credit term and including 12% VAT. Despite the increment, most customers are willing to accept the offer level. The producer noted that most buyers are aware of further price increase in polymer prices, considering the firmer crude oil prices. Besides, the current offers are deemed lower than the offer level available before the pandemic crisis.
Demand-wise, the producer said that most customers started securing materials in normal quantities, asserting that the market is gradually returning to normal days. On the production front, as the government eased its restrictions in some parts of the country, the producer is getting production lines rolling again. Since then, the producer’s plants are almost running at full capacity, between 90-95% from the normal output. “Our company will not be able to run at full capacity at the moment due to some technical issues. The problem is on our resin quality. We still cannot get the right particle size yet, hence we need to adjust the formula accordingly. However, it will not take a long time to fix, by next week at the latest,” the producer added to SSESSMENTS.COM.
For the outlook, the producer voiced out to SSESSMENTS.COM that the pace of PVC market recovery will depend on the country’s economic revival. Speaking of the economic sector, the producer added that it is becoming harder to get a loan from the banks at the moment. It is part of the measures from the banks to prevent fraud from their customers. The current situation is difficult and uncertain for market players, hence most prefer to take a cautious stance. However, the government cannot interfere in a bank's internal matter as most banks in the country are privately owned.
Tags: Asia Pacific,English,News,PVC,Philippines,SEA
Published on June 22, 2020 7:23 PM (GMT+8)Last Updated on June 22, 2020 7:23 PM (GMT+8)
