The leading Indonesian PVC producer informed SSESSMENTS.COM that the producer has sold out allocation for April shipment in export destination countries. The producer only provided one-third of normal allocation for April as demand is sagging. To the Southeast Asia market, the producer concluded deals between $800-820/ton while to the Australia market, deals were between $840-850/ton on LC at sight, CFR main port basis.
Similar to the export market, demand for PVC in the Indonesia market is also slowing down due to the Coronavirus outbreak. Considering the demand condition coupled with significant depreciation of Rupiah, the producer decided to sell cargoes in Rupiah to the domestic market. The producer mentioned to SSESSMENTS.COM that there is no issue in the production as all plants are running normally, but the producer could not guarantee normal delivery as it will depend on the government's decision to impose lockdown or not.
Pertaining to PVC prices this week, the producer commented to SSESSMENTS.COM that the prices collapsed because India as the big market for PVC is on a lockdown coupled with weakened buying sentiment. The producer predicts that PVC prices would drop up to $200/ton from the current levels.
