The leading Indonesian PVC producer revealed to SSESSMENTS.COM regarding adjustment on July shipment offers along with market responses. On June 19, July shipment offers from the leading Indonesian PVC producer surfaced with a remarkable increase of $90/ton from June shipment offers. The pricing decision was made following the international market trend. At the moment, the producer is focused on selling their cargoes to Southeast Asia as the market has gradually recovered from the impact of Coronavirus pandemic. Particularly in the Vietnam market, the demand is considered strong although Vietnam is in the edge of low seasonal demand based on the traditional pattern. The producer managed to conclude deals at around $780-800/ton-level; which is quite higher compared to other markets in the region. Whereas in Malaysia and Singapore, deals were at $785-795/ton. All on LC at sight, CIF Main Port basis.
To the China market, deals achieved at $780-800/ton on LC at sight, CIF Main Port basis. The producer explained that the company is unwilling to sell their cargoes to the China market at below $780-level considering the high local prices. Indeed, demand in China is quite healthy as supported by the supply shortage in the country amid the maintenance season and the majority of buyers are more willing to accept offers from Indonesia. To the Australia market, the producer is offering at $30-50/ton higher than to the Southeast Asia market owing to the higher freight cost. Whilst to the Bangladesh market, the producer decided to skip offering for this month taking into account the re-imposed lockdown in the country, SSESSMENTS.COM was told.
Further added to SSESSMENTS.COM, considering duty advantage coupled with slow demand in the domestic market, Indonesian producers would prefer diverting their cargoes to the export market. As such, lots of Indonesian cargoes are flooding China, Vietnam and Pakistan markets. Speaking of the local market, the producer hinted that July delivery offers will likely be adjusted higher by the same amount as of July shipment. The sell idea is expressed at $860-900/ton on cash, FD Indonesia basis and excluding 10% VAT, depending on the number of purchases.
